Simply days after registering marginal good points towards the U.S. greenback, the Ghanaian foreign money — the cedi — slipped to C14:$1 versus the U.S. greenback on the international trade parallel market on Nov. 7. The cedi’s reversal is claimed to have dented the foreign money’s restoration prospects. However, Ghana’s former president John Mahama and economist Steve Hanke have urged that the nation’s inflation charge is way increased than the 37.2% which was recorded in September.
Cedi’s Interbank Trade Price Unchanged
Simply days after it marginally recovered from an all-time low, the Ghanaian foreign money’s trade charge versus the U.S. greenback slipped past the 14:1 mark on Nov. 7, a report has stated. In accordance with the report, the cedi’s fall from C13.95 to C14.20 per greenback on the foreign exchange parallel market urged that the foreign money’s much-talked-about restoration versus the buck is unlikely to occur any time quickly.
Financial institution of Ghana Trade Charges pic.twitter.com/oognH3AM42
— Financial institution of Ghana (@thebankofghana) November 4, 2022
Regardless of its newest fall versus main international currencies on the parallel market, the Financial institution of Ghana (BOG)’s Nov. 8 trade charge information confirmed the cedi was buying and selling at simply above 13 models for each greenback. Actually, because the BOG’s Oct. 27 replace, the cedi’s interbank trade charge versus the greenback has remained largely unchanged.
Ghana’s Actual Inflation Price
After beginning the 12 months buying and selling above 6:1, the cedi, in line with the BOG, “has depreciated by 37.5 per cent, 24.1 per cent, and 27.5 per cent towards the US greenback, the pound, and Euro, respectively.” The BOG blames increased crude oil costs, the “non-roll over of maturing bonds by non-resident traders,” in addition to coverage reversals, for the cedi’s woes.
The cedi depreciation has, in flip, seen the nation’s official inflation charge surge previous 37% in September. Regardless of this being the nation’s highest inflation charge in 20 years, President Nana Akufo-Addo was just lately quoted claiming that Ghana’s charge continues to be higher than that of Togo and Senegal.
Nonetheless, former Ghanaian president John Mahama and Steve Hanke, a professor of utilized economics at Johns Hopkins College, have forged doubts over the genuineness of Ghana’s official inflation charge figures. Whereas Mahama urged that Ghana’s meals inflation is round 122%, Hanke positioned Ghana’s inflation charge at 142%, the world’s third-highest charge.
In accordance with the economics professor’s newest inflation dashboard, the one international locations whose inflation charges surpass that of Ghana are Zimbabwe (417%) and Cuba (151%).
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Terence Zimwara is a Zimbabwe award-winning journalist, creator and author. He has written extensively concerning the financial troubles of some African international locations in addition to how digital currencies can present Africans with an escape route.
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