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The Ghanaian cedi lost 40% in value on global markets.

The depreciation of the cedi was reported to be a result of "twin external shocks," the resignation of the then President of Ghana, and the OPEC output deal.

In 2017, a new administration took over power in Ghana and suspicions arose. The new president appointed a successor. The successor baulked at this choice citing that she had been consulted about her replacement which was not consented to before it had been public in this way.

This caused investors to withdraw from Ghanaian markets rapidly. As investments and savings are saddled by slinking inflation, we remained to chase better returns overseas given the historical lack of adequate hedging instruments domestically in Ghana's financial system.

Additionally, financing tightened on account and fears about depreciation not only for the cedi but also for other economies negatively impacted by external gaps and developments (increasing their cost of borrowing).

Ever since Ghana gained its independence, the Cedi has been pegged to the Dollar. But now it depreciates just under 40%

The latest indicator of this decline happened on October 6th when the finance minister, Ken Ofori-Atta devalued the cedi by 25%.

This pushed investors away from Ghana as we can see below in Wikipedia’s translation of money transfers from Ghana in US Dollars.

Wikipedia Reference:

Unemployment rate according to World Bank: 12%

Solution: With a strong devaluation and unemployment rate, articles about this topic need to include different initiatives underway by both government and citizens on how to ease the economic struggles. Even reducing expenses like using energy-efficient light bulbs to save on energy bills and reducing distances when driving which reduces your car's emissions are among some of these initiatives.

In the recent past, the cedi has depreciated to a point where it can't buy anything in dollars. This makes imports costlier, meaning that goods deplete very quickly on store shelves.

Currently, president Nana Akufo-Addo and the finance minister are calling for the courage to close the loopholes of foreigners trading with goods by buying goods in cedis and exchanging the money for use by brokers.

Jump-starting an enforced liquidity control system is also another move president Akufo-Addo and finance minister Amoako has made to help stabilize inflation, and also avoid the perpetual depreciation of cedis.

The cedi recent depreciation can make it difficult for Ghana in the international market but since we have many trenches to siphon fuel-guzzling businesses, we will not feel so much sting even when most prices do rise

Content created and supplied by: Alfred (via Opera News )

Cedi Dollar Ghana Ghanaian OPEC


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