As of February 18, 2022, the Ghana cedi 2022 is trading at GH¢7 to one US dollar mark on the retail market.
The local currency has fallen to a record low in recent days.
This means that the cost of operations of businesses, particularly manufacturing, will go up and consequently trigger increases in prices of some goods on the market, and for that matter inflation.
According to Joy Business report, some forex bureaus and commercial banks indicate that a dollar is being sold at a little above GH¢7.
It stated that some forex bureaus and banks are buying a dollar between GH¢6.85-GH¢7, they are selling one dollar for GH¢7-GH¢7.05.
Earlier, the Center for Economics, Finance, and Inequality Studies has projected that the cedi is expected to end 2022 at GH¢7.03 to the US dollar.
According to the Center, its forecast of the end-year depreciation of the cedi to the dollar is 99% accurate.
The Centre, therefore, wants the Bank of Ghana to supply enough forex to meet the demand of the dollar as it appears the current forex auction strategy is not meeting the market demand for forex.
It said: “This view of inadequate supply of forex is gleaned from the wide disparity that exists between Bank of Ghana’s forex quote and the interbank quotes. The similar disparities in quotes among banks at the retail level also indicate the inadequate supply of forex on the market.”
However, the local currency has come under intense pressure and is being classified among 15 top-performing currencies in Africa as one of the worst.
The Ghana cedi has been ranked as the second worst-performing currency.
The local currency has depreciated by 4.70% to the US dollar.
The depreciation has been attributed to upside risks to the economy including high debt and interest payments, inadequate revenue, and rising expenditure.