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Tag: US Dollar

  • Bloomberg ranks Ghana cedi as the best performing currency as of April 2025

    Bloomberg ranks Ghana cedi as the best performing currency as of April 2025

    The Ghana cedi has been ranked as the best-performing currency globally for the month of April 2025, appreciating nearly 16% against the US dollar, according to data from Bloomberg.

    This impressive appreciation has played a significant role in easing inflationary pressures in the country, bringing Ghana’s inflation rate to its lowest level in eight months. The cedi is currently trading at GH₵13.4 to the dollar.

    This comes after the Ghanaian cedi performed poorly against the US dollar, depreciating significantly and reaching its lowest point of the year at approximately GH₵16.71 per dollar in October 2024.

    Government Statistician Alhassan Iddrisu announced on Wednesday that consumer inflation dropped to 21.2% in April, down from 22.4% in March. Monthly inflation also slowed to 0.8%, largely due to reduced import costs made possible by the cedi’s strength.

    Food and non-food inflation also saw notable declines. Food inflation fell from 26.5% to 25%, while non-food inflation eased from 18.7% to 17.9%. Iddrisu credited the cedi’s appreciation for the drop, stating that the currency’s surge had helped curb the cost of imported goods.

    Bloomberg’s analysis confirmed that since April began, the cedi has outperformed all other global currencies against the dollar, boosting consumer confidence and reducing inflationary pressures tied to import prices.

    However, despite the positive outlook, financial analysts believe the Bank of Ghana (BoG) is unlikely to lower interest rates in the immediate term.

    Dr. Agyapomaa Gyeke-Dako, an economist at the University of Ghana Business School, explained that the central bank had taken a tightening stance in its last policy move to absorb excess liquidity. As a result, any decision to cut rates will likely depend on continued improvements in inflation, especially in the face of rising utility costs.

    In March, the Bank’s Monetary Policy Committee raised the benchmark interest rate by 100 basis points to 28% in a surprise move aimed at curbing inflation. The central bank has since signaled a cautious approach, committing to monitor economic conditions before making further changes to its policy stance.

    “It tightened at its last meeting to mop up any excess liquidity,” said Dr. Agyapomaa Gyeke-Dako, an economist and senior lecturer at the University of Ghana Business School. “So now the central bank action going forward may not readily reduce the monetary policy rate yet because there might still be some threats to inflation coming from the hikes in utility prices.”

    The Monetary Policy Committee (MPC) had surprised markets in March with a 100 basis-point hike, raising the key rate to 28% as part of efforts to stabilise prices. The central bank has indicated it will continue to assess inflation trends before easing its stance.

    “Easier monetary conditions could rekindle inflationary pressures,” warned Mark Bohlund, senior credit analyst at REDD Intelligence, cautioning that the Bank of Ghana may hold off on any near-term rate cuts.

    On issues regarding the volatility of the cedi, the BoG Governor Johnson Asiamah has stated that there is cautious optimism for rate relief later in the year if disinflation continues. 

    “As the monetary authority sees the next readings of inflation and we see declines, the committee will reassess the scope for a gradual easing in the policy stance.”

    In the wake of the cedi’s recent surge against the U.S. dollar, some critics have accused the government of propping up the local currency by offloading foreign reserves. However, the Bank of Ghana has strongly denied these claims, insisting that the currency’s gains are not the result of artificial intervention.

    According to the central bank, the cedi’s improved performance is largely driven by a steady buildup of foreign reserves, which has been made possible through the implementation of sound economic policies and strategic initiatives aimed at boosting forex inflows. These efforts, officials say, are strengthening the currency on a more sustainable basis.

    Despite this progress, inflation in Ghana remains above the Bank of Ghana’s target range of 6 to 10 per cent—a trend that has persisted since September 2021, when a debt crisis triggered a steep cedi depreciation and sharply increased the cost of imports. The Monetary Policy Committee expects inflation to ease to around 16 per cent by the end of 2025 and gradually return to the target band by mid-2026.

    The International Monetary Fund (IMF), which is working closely with Ghana under a support programme, also expressed optimism. 

    “It makes us very confident that inflation is going to go down in the next few months toward the program objectives,” said Stéphane Roudet, IMF Mission Chief to Ghana, during a recent briefing in Washington.

  • Ghana’s cedi hits GHS16.55 against US dollar amid ongoing depreciation

    Ghana’s cedi hits GHS16.55 against US dollar amid ongoing depreciation

    Ghana’s currency continues to face ongoing depreciation against key international currencies, including the US dollar.

    Despite experiencing a brief period of relative stability in July, when inflationary pressures showed signs of easing, the cedi has struggled throughout the year.

    As of October 17, 2024, at 10:00 AM, recent checks by GhanaWeb Business indicate that the cedi is trading at GH¢16.55 per dollar. Meanwhile, the British pound is valued at GH¢21.37 at various forex bureaus across the nation, and the Euro stands at GH¢17.90 in the retail market.

    According to a report from Bloomberg, the cedi has seen a slight weakening of 0.1%, trading at GH¢15.67 per dollar. This decline adds to the challenges facing Ghana’s economy, particularly concerning business pricing strategies.

    In the past month, the cedi has dropped nearly 1% against the dollar, contributing to a significant depreciation of about 24% for the year, as reported by Bloomberg.

    Additionally, the news portal noted that Ghana’s dollar bonds set to mature in 2032 increased by 0.2 cents, reaching 52.36 cents on the dollar as of 11:38 AM on September 11, 2024, in London.

  • Cedi’s value drops by 21% reaching GHS15.70 per US dollar

    Cedi’s value drops by 21% reaching GHS15.70 per US dollar

    The Ghana cedi continues to struggle against major trading currencies, losing 3.88% in value to the US dollar in the past week.

    The depreciation represents an increase in the cedi’s year-to-date devaluation to 21.20%.

    According to a report from myjoyonline.com, the cedi’s depreciation briefly follows the strengthening of the US dollar and heightened local foreign exchange demand.

    However, it started the week of June 18, 2024, unchanged, selling at GH¢15.70 to $1 at major forex bureaus.

    As part of measures to strengthen the US dollar, the US Federal Reserve signalled a single policy rate cut this year, contrary to market expectations of two cuts.

    The move has sent the US dollar back index soaring about 100 basis points week-on-week, causing the cedi to depreciate against it and other major trading currencies.

    The local currency also declined by 2.43% against the British Pound and 2.87% to the Euro last week.

    Despite its current performance, the Ghana cedi is expected to bounce back stronger as the Government of Ghana and its official creditors have reached an agreement on debt restructuring terms.

    This agreement would ensure Ghana receives a disbursement of the next tranche of the IMF bailout, made up of $360 million.

    Analysts also believe this will support foreign exchange buffers, improve FX liquidity, and help stabilize the weakening cedi in the near term.

  • Cedi currently sold at GHS15.00 per US dollar

    Cedi currently sold at GHS15.00 per US dollar

    Today, on May 17, 2024, the Bank of Ghana’s Interbank forex rates indicate that the Ghana Cedi’s buying price against the dollar is 13.7641, with a selling price of 13.7779.

    In Accra’s forex bureau, the dollar is being purchased at a rate of 14.70 and sold at 15.00.

    Against the Pound Sterling, the Cedi’s buying rate is 17.4474, while the selling rate is 17.4662.

    In an Accra forex bureau, the pound sterling is bought at 18.30 and sold at 18.80.

    The Euro’s buying price is 14.9673, with a selling price of 14.9822.

    At an Accra forex bureau, the Euro is bought at 15.70 and sold at 16.30.

    The South African Rand’s buying price stands at 0.7565, with a selling price of 0.7571.

    In an Accra forex bureau, the South African Rand is purchased at 0.40 and sold at 1.20.

    The Nigerian Naira’s buying rate is 110.3762, while the selling rate is 110.8133.

    In Accra’s forex bureau, the Nigerian Naira is bought at 9.00 Naira for every 1 Cedi and sold at 13.00.

    As for the CFA, it is bought at a rate of 43.7824 and sold at 43.8260.

    In an Accra forex bureau, the CFA is bought at 22.00 for every 1 Cedi and sold at 24.50 for every 1 Cedi.

    Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.

    Note that these rates may differ at a forex bureau near you. Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.

  • Kenyan currency plunges to record lows against US dollar

    Kenyan currency plunges to record lows against US dollar

    The Kenyan currency reached an unprecedented low of 150 shillings per US dollar, exacerbating the economic challenges in the heavily indebted East African nation marred by inflation, according to data from the Central Bank.

    The Kenyan shilling’s depreciation has been rapidly accelerating, losing nearly 24% of its value against the dollar over the past year.

    This decline has been attributed to the strengthening of the US currency, driven by recent Middle East crises that have spurred investment in safe-haven assets and the attractive yields on US Treasury bonds.

    Consequently, rising import costs and mounting national debt, which stood at over 10,100 billion shillings at the end of June, are posing significant economic challenges for Kenya.

    Repaying this debt, including obligations to China, is becoming increasingly burdensome for the government, as it will soon have to begin debt servicing in July.

  • A cedi goes for GHS11.65 a dollar at forex, BoG interbank rates at GHS11.02

    A cedi goes for GHS11.65 a dollar at forex, BoG interbank rates at GHS11.02

    On September 1, 2023, the Bank of Ghana released the Interbank forex rates, revealing the exchange rates for the Ghana Cedi against various currencies. Against the US Dollar, the Ghana Cedi is trading at a buying price of 11.0137 and a selling price of 11.0247.

    At a forex bureau in Accra, the US Dollar is being purchased at a rate of 11.40 Cedis and sold at a rate of 11.65 Cedis.

    In the case of the Pound Sterling, the Ghana Cedi is trading at a buying price of 13.9433 and a selling price of 13.9595.

    At a forex bureau in Accra, the Pound Sterling can be bought at a rate of 14.50 Cedis and sold at a rate of 15.00 Cedis.

    Regarding the Euro, the Ghana Cedi is exchanged at a buying price of 11.9409 and a selling price of 11.9537. In Accra’s forex bureaus, the Euro is available for purchase at a rate of 12.20 Cedis and is sold at a rate of 12.70 Cedis.

    The South African Rand can be obtained at a buying price of 0.5837 and a selling price of 0.5839 when trading with the Ghana Cedi.

    Meanwhile, in Accra’s forex bureaus, the South African Rand can be bought at a rate of 0.35 Cedis and sold at a rate of 0.95 Cedis.

    For transactions involving the Nigerian Naira, the Ghana Cedi has a buying price of 68.7509 and a selling price of 71.9526. Additionally, in Accra’s forex bureaus, the Nigerian Naira can be bought at a rate of 11.00 Naira for every 1 Cedi and sold at a rate of 16.00 Naira for every 1 Cedi.

    Lastly, when dealing with the CFA currency, the Ghana Cedi has a buying price of 54.8748 and a selling price of 54.9336.

    In Accra’s forex bureaus, the CFA can be acquired at a rate of 16.50 CFA for every 1 Cedi and sold at a rate of 20.50 CFA for every 1 Cedi.

    In terms of its operational endeavors, Gold Fields reported that it maintained its strategic momentum during the first half of 2023 by making notable progress in advancing several key initiatives.

    Note that these rates may be different at a forex bureau near you. Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.

    Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.

  • Cedi depreciation worsened in first half of 2023 – Finance Minister

    Cedi depreciation worsened in first half of 2023 – Finance Minister

    Data from the Ministry of Finance indicates that the depreciation of the local currency against the dollar has worsened.

    Presenting the 2023 Mid Year Budget Review Statement to Parliament on Monday, July 31, 2023, the sector Minister, Ken Ofori-Atta indicated that cumulatively, the Ghana cedi depreciated by 22.1 percent against the US Dollar in the year to July 17, 2023.


    This is in comparison to 21.1 percent depreciation recorded in the same period in 2022.
    Statements from the Finance Minister indicates that in January 2023 alone, the cedi depreciated by 20 per cent.


    However, from February to July this year, the local currency has depreciated by “an impressive 1.84%”.


    Inflation
    According to the Finance Minister, headline inflation eased in the first half of 2023.

    From the peak at 54.1 percent in December 2022, headline inflation gradually trended downwards from 53.6 percent in January 2023 to 42.5 percent in June 2023.


    The moderation in inflation was largely supported by monetary policy tightening, relative stability in the exchange rate and lower and stable ex-pump petroleum prices.

  • Forex rates show a USD selling at GHS11.80, BoG interbank rates at GHS11.00

    As of today, July 6, 2023, the Bank of Ghana’s Interbank forex rates indicate that the Ghana Cedi is being traded against the US Dollar at a buying price of 10.9949 and a selling price of 11.0059.

    At a Forex bureau in Accra, the US Dollar is being bought at a rate of 11.50 and sold at a rate of 11.80.

    Regarding the Pound Sterling, the Cedi is being traded at a buying price of 13.9767 and a selling price of 13.9918.

    At a forex bureau in Accra, the Pound Sterling is being bought at a rate of 14.60 and sold at a rate of 15.30.

    For the Euro, the buying price is 11.9541 and the selling price is 11.9660.

    At a forex bureau in Accra, the Euro is being bought at a rate of 12.20 and sold at a rate of 12.80.

    The South African Rand is being traded at a buying price of 0.5850 and a selling price of 0.5854.

    At a forex bureau in Accra, the South African Rand is being bought at a rate of 0.30 and sold at a rate of 0.90.

    The Nigerian Naira is trading at a buying price of 69.5529 and a selling price of 69.6466. .

    At a forex bureau in Accra, Nigerian Naira is being bought at a rate of 13.00 Naira for every 1 Cedi and sold at a rate of 19.00.

    For the CFA, it is trading at a buying price of 54.8184 and a selling price of 54.8730.

    At a forex bureau in Accra, CFA is being bought at a rate of 17.00 CFA for every 1 Cedi and sold at a rate of 21.00 CFA for every 1 Cedi.

    Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.

    Note that these rates may be different at a forex bureau near you. Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.

  • Focus on ECB meeting outcome as pressure mounts on dollar

    Focus on ECB meeting outcome as pressure mounts on dollar

    On Thursday May4 2023, the was still under pressure against most major currencies, helping the pound reach its highest level in 11 months. This came as the Federal Reserve hinted at slowing its aggressive tightening cycle and ahead of a critical European Central Bank meeting.

    Markets were also buffeted by risk aversion amid a rout in regional U.S. bank shares, which further supported market expectations of rate cuts later in the year.

    The euro was last down slightly on the day at $1.1044, having jumped 0.57% on Wednesday.

    The pound was last flat at $1.2566 , but in Asia trade hit $1.2595, its highest since June 2022, and the Swiss franc reached 0.88215 per dollar, its strongest since January 2021, before softening.

    The narrowing rate differentials between the U.S. and Europe, as markets price in more European rate increases than in the U.S., has been boosting European currencies in recent months.

    The Fed on Wednesday raised its benchmark overnight interest rate by a quarter of a percentage point, as expected, but dropped from its policy statement language that it “anticipates” further rate increases would be needed.

    “If this does prove to be the last hike of the cycle, the next big question for FX markets will be: how long will rates remain at these levels?” said HSBC analysts in a note.

    The Fed has guided markets away from the possibility of rate cuts this year, though markets are pricing them in nonetheless.

    “If the Fed is proved right over the course of 2023, then it will make it harder for the USD decline to extend later in the year.”

    “But for the time being, the market is likely to run with the theme of a peak in Fed rates justifying a clear peak in the USD and an ongoing reduction in the greenback’s residual overvaluation,” said HSBC.
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    Money markets are now pricing in a slightly more than 10% chance the Fed will begin cutting rates in June, and expect roughly 80 basis points of rate cuts through to the end of the year.

    The European Central Bank announces its rate decision later in the day. Market positioning is for a 25 basis point increase, though it reflects a chance of a larger 50 bp increase.

    Traders will also be closely watching the ECB statement and governor Christine Lagarde’s press conference for indications about the central bank’s future rate path, with expectations being the ECB has not finished raising rates.

    Adding to expectations the Fed will soon have to begin easing monetary conditions were lingering fears of banking sector turmoil, intensified by news that PacWest Bancorp (PACW.O) is exploring strategic options. The Los Angeles-based lender said it has been approached by several potential partners and investors.

    “There are a lot of concerns in the U.S. around the banking sector and the crunch on credit. This is a credit event and that feeds through to the economy quite quickly,” said Jarrod Kerr, chief economist at Kiwibank.

    “So I think central banks, including the Fed, are at or very near the peak in their cash rates.”

    The cautious risk sentiment kept the Japanese yen – a traditional safe haven in times of market turmoil – well supported, with the currency at 134.71 against the U.S. dollar

    The dollar fell 1.4% against the yen on Wednesday, with the rate sensitive Japanese currency supported by a slide in U.S. Treasury yields.

    The Norwegian crown took a short trip after Norway’s central bank raised interest rates by 25 basis points as expected. It initially softened sharply against the euro and dollar, but recovered.

    The dollar was last down 0.4% at 10.715 crowns, the euro was last down 0.7% at 11817. ,

  • Yuan surpasses the dollar as the most popular currency in cross-border transactions in China

    Yuan surpasses the dollar as the most popular currency in cross-border transactions in China

    The yuan became the most widely-used currency for cross-border transactions in China in March, overtaking the dollar for the first time, official data showed, reflecting efforts by Beijing to internationalise use of the yuan.

    Cross-border payments and receipts in yuan rose to a record $549.9 billion in March from $434.5 billion a month earlier, according to Reuters calculation based on data from the State Administration of Foreign Exchange.

    The yuan was used in 48.4% of all cross-border transactions, Reuters calculated, while the dollar’s share declined to 46.7% from 48.6% a month earlier.

    The volume of cross-border transactions covers both the current and capital accounts.

    China has long been promoting the use of yuan to settle cross-border trades as part of an efforts to internationalise the use of its currency.

    The yuan’s use in global trade finance remains low, though it has shown steady increases.

  • Cedi continues rise against dollar

    Cedi continues rise against dollar

    The Ghana cedi continued to rise steadily against the US dollar amidst the Bank of Ghana’s tight foreign exchange intervention.

    The regulator sold only $5 million on the spot market while withholding its bi-weekly FX auctions.

    The cedi closed on Friday, February 10, 2023, at an indicative rate of ¢10.80 to one US dollar on the interbank market.

    It gained 0.81% to the dollar to close at a mid-rate of ¢12.35/US$ on the retail market.

    It also recorded a week-on-week appreciation of 2.35% against the pound and 0.38% to the euro on the retail market.

    Some analysts claim that the local currency’s recent performance indicates that Ghana is on course to achieve a successful Debt Exchange Programme which consequently will boost market confidence and positively impact the cedi’s outlook.

    This will pave way for an International Monetary Fund programme by the end of the first quarter of 2023.

  • Cedi to witness more pressure if current account deficit is not checked – World Bank

    Cedi to witness more pressure if current account deficit is not checked – World Bank

    The World Bank has warned that the Ghana cedi may continue to come under pressure in 2023 against the U.S dollar if efforts are not directed at controlling the country’s current account deficit to a sustainable level.

    The caution was captured in the World Bank’s January 2022 Global Economic Prospects report.

    “Large current account deficits are likely to keep currencies under pressure in several countries, adding to inflation and external vulnerabilities (Gambia, Ghana)”, the report said.

    The report encouraged government to take extra measures to manage its current account deficit in 2023.

    It further pointed out the need to institute policies that will boost exports to narrow the current account deficit, while controlling imports.

    It stated that introducing these actions together with policies aimed at checking inflation in the coming months will help stabilise the economy and deal with some of the threats that will impact negatively on the local currency.

     Cedi recent performance

    The Ghana cedi was on January 10, 2023 selling at ¢12 to the US dollar in the retail or forex market, following days of sustained stability.

    This was about 0.86% loss in value since the beginning of the year.

    The Bank of Ghana, however quoted a dollar for ¢9.00 on the interbank forex market.

    Checks by Joy Business at some forex bureaus at the time indicated that the pound was the major currency that had lost more value so far in 2023. One pound was going for ¢14.20.

    The euro had also depreciated by a little over 1%, trading at ¢12.50.

    Source: myjoyonline

  • Cedi appreciation: Something is fundamentally wrong – Asani Tanoh

    Political analyst, Yaw Asani Tanoh has questioned the government’s efforts in the stabilization of the cedi.

    The cedi is no more the worst-performing currency but among the top-performing currencies in Africa, according to reports.

    The Ghana cedi continues to gain strength against the US dollar and the euro.

    Checks at some forex bureaus indicate that the cedi is going for ghc8 to the dollar as of Monday, 19th December 2022

    President Akufo-Addo has attributed “the strengthening of the cedi” to “cedi liquidity tightening measures, resulting in the offloading of forex, as a store of value, by speculators; the improvement of forex flows from remittances and the mining sector; and the reaching of a staff level agreement with the IMF for a US$3 billion package.”

    However, Asani Tanoh has doubts.

    Contributing to a panel discussion on Neat FM’s ‘Me Man Nti’ programme, he said “this is not real”.

    “This is just surprising . . . looking at the last two months, from October, the rate at which the cedi depreciated not just on daily basis but hours more or less; if you are looking for a typical economic voodooism this is one form of it. We all want the cedi to appreciate but any Economist who will tell you this is real just hoot at him. The reality is there’s something fundamentally wrong somewhere . . . you will see the reality after Christmas . . . ”

    “We are still doing the old things we have been doing so ask yourself, what have we exported or generated that is making the cedi gain that strength?” he quizzed.

  • Cedi makes an unexpected recovery versus the dollar, rising 63%

    Now that the Ghana cedi has seen a startling comeback versus the US dollar as of mid-December, rising by 63.7 percent, businesses and households can finally breathe a sigh of relief.

    This is a shocking development because only a few weeks ago, the Ghana cedi was severely undervalued against the US dollar on the foreign currency market, losing 54.2 percent of its value year to date at the end of November and trading as low as GH15 to $1.

    However, according to information from the Bank of Ghana, on December 15, 2022, the local currency defeated the US dollar and gained 63.7 percent in value (currently trading at about GH 8), bringing the year-to-date depreciation to 24.9 percent.

    This has eased the enormous and unbearable pressure on the price of goods that consumers experienced in the past two months, as prices at least doubled on the market due to exchange rate pressures. For example, diesel prices at the pumps in early November moved to more than GH¢23, but have now fallen to around GH¢16.

    And for a country that is heavily dependent on imports, especially food products, the cedi’s stability has seen prices stabilise – albeit there have been no reductions.

    The obvious question being asked is: what is/are accounting for this sudden recovery of the Ghana cedi, which was gasping for air in the intensive care unit with little hope of survival.

    Basically, rapid depreciation in the exchange rate, according to the Bank of Ghana, was largely influenced by speculation – especially when it was apparent that government was going to embark on debt restructuring, leading to portfolio rebalancing in favour of foreign currency holdings as against Ghana cedi-denominated assets

    To address this, the central bank introduced directives which sought to control this speculative behaviour.

    It instructed banks and forex bureaus to only trade foreign currency to those who genuinely need it for transactions; demanding that such individuals or businesses provide proof of their need for foreign currency to conduct such business.

    The Bank also embarked on an aggressive exercise to flush-out illegal forex operators, popularly known as ‘the black market’. As a result, together with the police it arrested more than 70 illegal forex operators in September – sending a strong message to the public that it is on the alert for such operators.

    This, central bank Governor Dr. Ernest Addison said, became necessary due to the role being played by the black market in determining exchange rates on the forex market.

    “Clearly, this type of movement does not reflect changes in the fundamentals. It’s clear that the market is not functioning properly. We are seeing speculation taking over under very disorderly market conditions, and it appears that now the black market is rather driving exchange rates. This we cannot allow to continue,” he said when meeting the Association of Forex Bureau Operators toward the end of October.

    Dr. Addison further stated that the central bank is bent on restoring order in the forex market by making sure the interbank market takes full control to enforce regulations surrounding forex trading, so as to streamline the supply of foreign currency in the country.

    As to whether the cedi’s recovery will be long-lasting or not, it is a matter that can only be determined by time. But in the meantime, the cedi’s outstanding performance – whether serendipitous or by deliberate policies – elicits a deep sigh of relief from businesses and households.

  • Fuel prices to go down from December 16

    Beginning on Friday, December 16, 2022, the cost of petroleum goods will drop significantly, according to IES projections.

    The IES indicates that the expected fall follows the continuous appreciation of the cedi against the US dollar in recent times and the continued price falls recorded on the international market over the first pricing window.

    The cedi’s appreciation against the US dollar currently stands at 6.60 percent.

    Resultantly, new prices are projected to be at about GH¢13 and GH¢16 per litre for petrol and diesel respectively while Liquefied Petroleum Gas is expected to sell at GH¢12 per kilogram.

    “With the continued price falls recorded on the international market, consumers are set to see further price relief at the pumps. The Institute for Energy Security (IES) predicts that on the back of 9.02%, 8.08% and 7.38% fall in prices of Gasoline [petrol], Gasoil [diesel] and LPG respectively, the domestic OMCs outlets are set to reduce their prices further”, the IES said in a statement.

    World fuel market

    The global Standard & Poor’s (S&P’s) Platt averages monitored over the last pricing-window indicate that the price of petrol continues to fall, with price in the period under review dropping by 9.02 percent from US$838.78 per metric tonnes to US$763.10 per metric tonnes.

    Diesel prices also further dropped by 8.08 percent from US$969.70 per metric tonne to US$891.30 per metric tonne. LPG price also followed in same direction, falling by 7.38 percent from US$618.20 per metric tonne to US$572.58 per metric tonnes.

  • Bawumia clarifies that gold can be used to pay for oil-related products instead of dollars

    Dr. Mahamudu Bawumia, the vice president of Ghana, has said that using gold instead of dollars to buy oil is not a step against using the US dollar for international trade.

    He added that the decision was made as a result of the Ghana cedi’s ongoing depreciation.

    Dr. Bawumia stated that Ghana currently needs a lot more dollars in its reserves, hence the choice was not to boycott the usage of foreign money, during the AGI Awards night in Accra.

    He said: “To address this fundamental challenge that we all face of depreciation and its impact on fuel and utility prices and food and so on, the government has opted to implement a policy of using our gold to buy oil products.”

    “If we implement it as we have envisioned, it will fundamentally change our balance of payment and significantly reduce the persistent deprecation of our currency,” he added.

    “This has been misrepresented as Ghana being against the use of the US dollars in international transactions. This is not the case. We are not on any mission against the use of the dollars in international transactions, far from it. In fact, we want to accommodate all US dollars in our reserves. But we have a specific issue to deal with oil imports and the prices of fuel, food, and transport and utilities that’s essentially what we are targeting,” the Vice President explained.

    Dr. Bawumia had earlier revealed government is negotiating a new policy that seeks to ensure the country purchases imported oil products with gold rather than foreign exchange.

    In a Facebook post on November 24, 2022, the Vice President said the policy is expected to take effect by the end of the first quarter of 2023 and form parts of efforts to address the persistent depreciation of the cedi.

    He explained that once the policy is implemented, “it will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency with its associated increases in fuel, electricity, water, transport, and food prices”

    “This is because the exchange rate (spot or forward) will no longer directly enter the formula for the determination of fuel or utility prices since all the domestic sellers of fuel will no longer need foreign exchange to import oil products,” the Vice president said.

    “The barter of gold for oil represents a major structural change. My thanks to the Ministers for Lands and Natural Resources, Energy, and Finance, Precious Minerals Marketing Company, and the Governor of the Bank of Ghana for their supportive work on this new policy. We expect this new framework to be fully operational by the end of the first quarter of 2023. God bless our homeland Ghana,” Dr. Bawumia earlier wrote on Facebook.

  • Ghana would and should accumulate more dollars as international reserves – Bawumia

    Vice-President Dr Mahamudu Bawumia has stated that some analysts and commentators have misinterpreted Ghana’s stated policy of using gold reserves to pay for oil as an attempt by Ghana to move away from the US dollar for international transactions.

    Speaking at the 2022 AGI Awards in Accra, Dr Bawumia noted that on the contrary, Ghana’s gold for oil programme will give Ghana the space to accumulate more international reserves as the country will save the $3 billion it spends on oil imports.

    He further stated that the use of gold was specifically for oil imports in the face of declining foreign exchange reserves.

    “Unfortunately some people have misinterpreted this as Ghana being against the use of the US dollar in international transactions. Far from it. We want to accumulate more US dollar reserves in the future”, the Vice President noted.

    Vice President Bawumia noted that a major source of cedi depreciation has been the demand for forex to finance our import of oil products and to address this challenge, Government, he said, is negotiating a new policy regime where sustainably mined gold will be used to buy oil products.

    ”If we implement the gold for oil policy as it as envisioned, it will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency with its associated increases in fuel, electricity, water, transport and food prices.”

    This, he noted, is because the exchange rate (spot or forward) will no longer directly enter the formula for the determination of fuel or utility prices since all the domestic sellers of fuel will no longer need foreign exchange to import oil products,” Dr. Bawumia said.

     

     

  • Playback: Kume Preko demonstration

    Calls for President Akufo-Addo to resign as Ghana’s president have become intense as hundreds of protestors thronged the streets of Accra.

    The aggrieved citizens clad in red and black attires are demonstrating against the country’s current economic state.

    The cedi had lost more than 30% of its purchasing power against the US dollar as of September, partly pushing inflation rate to 37.2 per cent, the highest in almost two decades.

    The local currency is selling at about GHS13.7182 against the dollar on the forex.

    Currently, a litre of petrol is going for about GHS18, and that for diesel, close to GHS24, as such, transport operators have increased transport fares.

    Meanwhile Ghanaians are demanding that government should relief the Finance Minister, Ken Ofori-Atta as well as the Minister of State at the Finance Ministry, Charles Adu Boahen of their duties.

    Source: The Independent Ghana

  • ‘Your demand to peg salaries to US dollar untenable’ – VALCO to workers

    The management of the Volta Aluminium Company (VALCO) has claimed that its employees want their pay tied to the dollar.

    This came about as a result of a demand made by over 300 workers, who were supported by union executives, following their most recent compensation adjustment, which took effect on September 1, 2021.

    However, recent employee unrest at the business has prevented management and employees from coming to terms, which led to protests on Friday, October 28, as a result.

    VALCO in a statement however clarified that the salary of the Ghanaian worker is not indexed in the United States but rather in Ghanaian local currency, the Cedi.

    “The demand for workers to have their salaries pegged to US Dollar is untenable and must be disregarded,” portions of the statement read.

    “We however recongize that both internal and external factors may cause an appreciation or depreciation of the cedi to the US Dollar and other foreign currencies, a situation that may impact the salaries of workers from time-time,” VALCO explained.

    In addition to this, management of VALCO said workers have since rejected a 22 percent salary increment in demand of the dollar equivalent.

    According to the management, staff of the company described the increment as insufficient and staged a demonstration in the early hours of Monday, October 31, 2022, to register their displeasure.

    The workers are therefore calling for better conditions of service and the immediate dismissal of some management members whom they describe as retirees.

  • Cedi rising because of motion for censure against Finance Minister – Speaker

    Speaker of Parliament Alban Bagbin says the Cedi has gained some value against the US dollar following moves in parliament to remove Ken Ofori-Atta as Finance Minister.

    According to him, the action being taken by the minority concerning a motion for a vote of censure against Ken Ofori-Atta, the Finance Minister, has begun restoring some level of confidence in the Ghanaian economy.

    “Because of this motion, you know what has happened to the state of our Cedi. Just because people are given confidence that action is being taken, the Cedi gained some value, and parliament should be commended. It climbed from about 16 to a dollar to around 13, that is a serious gain for this country, and it’s because there is some confidence being given to the people that action is being taken to rectify the wrongs. Please let’s play our role properly and effectively, and at the end of the day, we’ll all benefit,” he told MPs on Thursday.

    Meanwhile, he thanked the Deputy Majority Leader, Afenyo Markin, for drawing the attention of the House with regard to the proper procedure in filing the motion for a vote of censure against Finance Minister Ken Ofori-Atta.

    “You’ve done well by drawing our attention, but I think the proper thing has been done, and we should leave it as it is. I know as we keep on jaw-jawing, we’ll do what is proper in this House.”

    The deputy majority leader, Alexander Afenyo-Markin, had argued that the minority MPs failed to attach evidence to the motion to back their claims.

    “Mr. Speaker, I beg to submit that the legal grounds or grounds for submission are not embedded in the motion. I am saying that Mr. Speaker, the motion is supposed to be advertised; that is what the constitution says. The constitution is not saying that you should accompany it with allegations as part of the motion; that is my contention. And if they beg to disagree, they should say so for the records to capture. And if there is any other provision that perhaps I have not read which allows you to state allegations, not fact, to support your motion, they should again draw my attention; we are here to learn. I’m not ashamed if I get it wrong, and I’m corrected. Mr. Speaker, I so submit.”

    Minority leader Haruna Iddrisu however, rubbished the claim arguing there’s enough evidence to impeach Ken Ofori-Atta.

    “We have made reference to constitutional provisions of Article 178, 176, and 82. Mr. Speaker to demonstrate with facts on this floor that the Minister is in breach of the law apart from the fact that he’s trashed the Ghanaian economy, we’ll do so. You cannot question the competence of the Speaker in admitting the motion. And we have not given you any fact, we are only giving you headlines of the matters to which we’ll lead with evidence.”

    Background

    Members of Parliament on the Minority side have tabled a motion for a vote of censure on Ken Ofori-Atta, the Finance Minister, filed on Monday.

    The minority cites the gross mismanagement of the Ghanaian economy which has occasioned untold and unprecedented hardship among others.

    The motion was filed a day before parliament resumed from recess.

     

     

  • Chinese yuan falling due to concerns about Xi’s third term

    The Chinese yuan fell to its lowest level in nearly 15 years on Tuesday as investors fled Chinese assets amid concerns about Xi Jinping’s dramatic move to consolidate power in a major reshuffle of Communist Party leaders.

    On the tightly controlled domestic market, the yuan dropped sharply, hitting the weakest level since late 2007. It was last down 0.6% at around 7.3 per dollar. The currency has lost 15% against the US dollar this year.

    In trading outside of mainland China, the yuan briefly plunged to around 7.36 per dollar early Tuesday, the lowest level on record, according to Refinitiv, which has data going back to 2010. It later pared losses, trading at 7.33 by 3:35 p.m. Hong Kong time (3.35 a.m. ET).

    The currency was pegged at 8.28 to the US dollar for years until 2005 when China moved to a “managed floating exchange rate.” It then appreciated steadily, climbing to a peak of nearly 6.01 in 2014.

    The declines came alongside a historic market rout for Chinese assets worldwide. On Monday, Chinese stocks plummeted in Hong Kong and New York, wiping out billions of dollars in market value. Hong Kong’s benchmark Hang Seng (HSI) Index closed down 6.4%.

    The Nasdaq Golden Dragon China Index, which tracks many popular Chinese companies listed on Wall Street, dived more than 14%. On Tuesday, the Hang Seng (HSI) slipped further and was down 0.2% in afternoon trading.

    The huge sell-offs came just days after the ruling Communist Party unveiled its new leadership for the next five years. In addition to securing an unprecedented third term as party chief, Xi packed key positions with staunch loyalists.

    A number of senior officials who have backed market reforms and opening up the economy were missing from the new top team, stirring concerns about the future direction of the country and its relations with the United States.

    International investors spooked by the outcome of the leadership reshuffle dumped Chinese assets despite the release of stronger-than-expected Chinese GDP data on Monday. They’re worried that Xi’s tightening grip on power will lead to the continuation of Beijing’s existing policies and further dent the economy, which despite the rebound last quarter is still growing way below the official 5.5% target for this year.

     

  • ‘We’ve made good progress’ – IMF on Ghana’s support programme talks

    The International Monetary Fund (IMF) team, led by Stéphane Roudet, have indicated that there has been good progress regarding Ghana’s request for a financial bailout from the fund.

    After meeting with Ghana’s Finance Minister, Ken Ofori-Atta and Bank of Ghana Governor, Dr. Ernest Addison in Washington DC, the IMF team leader said both teams had a fruitful discussion in identifying specific policies that would restore macroeconomic stability.

    “The Ghanaian delegation and IMF staff had very fruitful discussions on the authorities’ post-COVID program for economic growth and associated policies and reforms that could be supported by a new IMF arrangement.

    “We made good progress in identifying specific policies that would restore macroeconomic stability and lay the foundation for stronger and more inclusive growth. The IMF team and the Ghanaian authorities remain fully committed to reaching an agreement on a framework and policies for an IMF-supported program as soon as feasible. Discussions will continue in the weeks ahead, with a follow-up mission to take place expeditiously,” Stéphane Roudet said in a statement after the meeting.

    The Finance Minister had earlier assured Ghanaians that the economy is in good shape despite the continuous depreciation of the Cedi.

    Speaking to a journalist of Accra-based Asaase Radio from Washington DC, Ken Ofori-Atta said, “It is a bit perplexing because as you know, typically we go to markets at the beginning of the year and get our two billion.

    “But that we were not able to do, we were able to then get US$750 from AfriExim in the summer, August or so, to stabilize it. Then we moved on traditionally as we do, the ASL, the annual syndicated loan of COCOBOD, and that came in very strongly. So, it is quite perplexing to see where it is going.”

    “The support we are getting from countries like Germany, France etc. we are confident that we will get the resources needed. So, we really would want people to know not to panic or be rushing to put pressure on the currency. I think it is unnecessary and we are in good shape.

    “Of course, typically in October, people are importing for Christmas and maybe there is a rush for that. But my expectation is that once we also conclude the fund, that would lead to the Fund’s disbursement early next year.”

    The Cedi has recently been classified by Bloomberg as the worst-performing currency against the US Dollar.

    Currently, the Cedi is trading at around GH₵13 – GH₵14 to a dollar at some forex bureaus.

     

  • FLASHBACK: The fight between the cedi and the dollar

    The battle between the dollar and the cedi has gone on indefinitely because the dollar keeps rising while the cedi falls.

    The cedi has currently lost more than 50% of its value against the dollar. GhanaWeb examines the path of the cedi from January to August in this article.

    Many Ghanaians will attest to the fact that 2022 has not exactly been a good year, particularly when it comes to the performance of Ghana’s economy.

    All the macroeconomic indicators seem to be pointing in the wrong direction, with inflation rising to unprecedented levels (currently hovering above 30 percent). As a result, the prices of food, transport, and oil products have particularly become issues of grave concern to many Ghanaians.

    The concern is why prices are increasing at unprecedented levels in Ghana. One major reason is the depreciation of the country’s currency, the Ghana Cedi. 2022 has not been a good year for the cedi, with the currency currently losing about 40 percent of its value and being ranked as the second worst performing currency among 150 currencies in the world, according to Bloomberg.

    But how did we get to this point? GhanaWeb takes a look the performance of the cedi against one major foreign exchange, the US Dollar (dollar).

    Cedi to dollar rate in January 2022

    According to data from the Bank of Ghana (BoG), the cedi/dollar rate was GH¢5.9 at the beginning of January 2022. But it depreciated to GH¢6.02 at the inter-bank level, indicating a depreciation of nearly 12 percent.

    Cedi to dollar rate in February 2022

    As of the end of February 2022, the cedi had once again depreciated against the dollar by about 10 percent, from the GH¢6.02 rate at the end of January 2022 to GH¢6.6, as per data from the BoG.

    Cedi to dollar rate in March 2022

    For March 2022, the cedi once again depreciated significantly to the dollar from GH¢6.6 to GH¢7.1, showing a month-on-month depreciation of approximately 8 percent.

    Cedi to dollar rate in April 2022

    At the end of April 2022, the cedi depreciated by less than 1 percent month-on-month, from GH¢7.1122 to GH¢7.1128.

    Cedi to dollar rate in May 2022

    The cedi to dollar rate at the end of May 2022 was GH¢7.14, which again signifies a less than 1 percent drop from the GH¢7.11 cedi dollar rate recorded at the end of April 2022.

    Cedi to dollar rate in June 2022

    For June 2022, the cedi depreciated to GH¢7.23 per dollar, which showed a depreciating rate of 1.3 percent compared to the GH¢7.14 exchange rate for May 2022.

    Cedi to dollar rate in July 2022

    The value of the cedi reduced to GH¢7.61 by the end of July from the GH¢7.23 per dollar it started with for the month. This showed an approximate percentage depreciation of 5 percent.

    Cedi to dollar rate in July 2022

    On the Interbank forex rates from the BoG on Friday, August 19, 2022, the cedi is trading against the dollar at 8.1031. This shows a month-on-month depreciation rate of about 6.6 percent from the previous month.

    Per the figures of the BoG, the cedi-dollar rate was 5.9 at the beginning of 2022; now, it is 8.1. This shows that from January 2022 to today, August 19, 2022, the Ghana Cedi’s value has fallen by approximately 40 percent.

    From the figures above, it is clear which currency is winning the cedi and dollar ‘fight’.

  • UK’s market rally could be due to a variety of factors minister says

    More from Trade Minister Greg Hands, who says the rally in UK financial markets yesterday and this morning could be due to “a variety of different factors.”

    The pound has climbed against the dollar, and yields on government bonds, known as gilts, have fallen, lowering the cost of borrowing for the government.

    When asked if former Bank of England governor Mark Carney is wrong to imply they are reacting to the idea that the government will reverse its decision on the mini-budget soon, the minister refused to answer.

    Hands cite the Japanese Yen hitting a 30-year low against the US dollar and the euro performing as poorly as the pound as other reasons that could have caused the rally.

    He cites his own experience working in financial services and argues they “behave the way they do based on information that comes into them from a multitude of different sources”.

    “It’s not a UK-only thing,” Hands tells the Today programme.

    Pushed on whether the country would be better off if his preferred candidate Rishi Sunak had become prime minister, Hands says “no” and calls on the Conservative Party to “unite behind” Liz Truss.

    Source: BBC.com

     

  • Cedi to US dollar rate: Breaking the 8, racing to 10 and the new 11 factor

    Some Ghanaians were unaware that the Ghana Cedi had now reached the GH11 mark to the US$1 mark when they awoke on Monday, October 10, 2022, to read the news or conduct business.

    The unexpected turn of events occurs at a time when practically all economic indices in Ghana are ringing alarm bells, prompting Ghana to request financial assistance from the International Monetary Fund.

    The sustained depreciation of the cedi versus the US dollar has left the typical Ghanaian struggling to make ends meet while others appear to be in a panicked state due to the country’s ‘falling’ economy.

    In plain terms, the cedi’s performance has culminated in rising inflation figures, huge debt costs, credit rating downgrades, policy rate hikes, increasing cost of living, and a general atmosphere of frustration among the average Ghanaian.

    Since the start of the year till date, the underwhelming performance of the cedi against the US dollar has also seen the currency losing about 40 percent of its value.

    This has placed the cedi in a perilous position after it has been ranked as the second worst-performing currency among 150 currencies in the world, according to Bloomberg.

    GhanaWeb Business in this article takes a look at the trend of the cedi’s performance against the US Dollar.

    Why the cedi is on a free fall

    At the beginning of January 2022, the cedi was trading at a rate of GH¢5.9 to the US dollar, according to data from the Bank of Ghana.

    But it shortly depreciated to GH¢6.02 at the inter-bank level, indicating a depreciation of nearly 12 percent – a signal which sparked the current performance of the cedi.

    The government, in presenting its 2022 budget, had hoped to pass a number of key policies to boost the country’s domestic revenue but that hit a snag as debate over the passage of the E-Levy rocked parliament.

    This then sent wrong signals to investors in both domestic and international markets.

    Also, demand for forex had overtaken supplies during a period when high debts and low investor confidence made it impossible for Ghana to access the international capital market for borrowing.

    Cedi breaks the 8 in March 2022

    In March 2022, the Ghana Cedi continued its free fall against the US dollar, crossing the GH¢8 mark and selling at GH¢8.12 as of the 15th of the month.

    The local currency at the time was trading against the dollar at a buying price of GH¢7.94, while the British pound was selling at GH¢10.17 and buying at GH¢10.17.

    The currency however still went on a free fall despite witnessing some marginal appreciation.

    Cedi hits the 10 mark in September

    Although the government began to adopt certain measures in hopes of containing the cedi’s depreciation, the local currency’s woes continued as it reached the GH¢10 to $1 mark in September.

    This signaled more concerns over the government’s ability to fully address the development, despite adopting a Special Foreign exchange auction for bulk distribution companies and a Gold Purchase Programme.

    As of Monday, September 5, 2022, some forex bureaus in Accra were selling $1 for GH¢10.12 and buying it at GH¢9.90.

    And as of September 27, the Minister of Finance, Ken Ofori-Atta, said the cedi had lost its value by about 31.7 percent to the US dollar.

    The local currency was selling at around GH¢10.50 to the US dollar on the retail market and forex bureaus.

    Cedi reaches unprecedented GH¢11 mark in October

    Despite the assurance from the government that measures were being adopted to address the cedi’s performance, the dollar hit the unprecedented GH¢11 to $1 mark at some forex bureaus in the country.

    As of October 8, 2022, checks by GhanaWeb Business showed that the cedi was selling at GH¢11.2 to $1 dollar. This has now renewed further concerns over the demand and supply of US dollars which now seems to be scarce in circulation.

    While Ghana waits to access an IMF-supported programme in 2023 amid ongoing negotations, recent downgrades of the country’s creditworthiness by international rating agencies: Moody’s, Fitch, Standard and Poors’, all paint a rather gloomy picture of the economy.

    The Central Bank on October 7 announced a further hike in the monetary policy rate by 250 basis points to 24.5 percent from an earlier 22 percent to stem inflation pressures.

    But the Governor of the Bank, Dr. Ernest Addison, is convinced that the outlook of the Ghana cedi will improve, aided by the recent disbursement of a $750 million loan facility from Afreximbank.

    He added that the signing of the $1.13 billion COCOBOD syndicated loan and an agreement with gold and oil firms to purchase repatriated foreign exchange earnings will help stabilize the exchange rate.

  • Ghana Cedi is worst performing currency against US dollar – World Bank report

    The Ghana Cedi has recently been experiencing rapid depreciation against major trading currencies, especially against the United States dollar.

    The woes of the national currency have taken another hit with a World Bank report classifying the Ghana Cedi as the worst-performing currency in Africa against the US dollar.

    The Africa Pulse Report noted that the cedi had experienced a 60% depreciation against the dollar as of September 19.

    The report which tracked growth prospects and threats to African economies in 2022, also classified Ghana as a debt-distressed country with a debt-to-GDP ratio expected to surpass 100% by the end of the year.

    Explaining why their depreciation rate is higher than the widely reported 40% figure, Accra-based Joy News report that the bank confirmed to them in an email correspondence that, “it used a different methodology to track the FX rate of depreciation from the beginning of this year to September 19 2022.”

    That is why the World Bank arrived at the 60 percent rate of depreciation, compared to 40 percent if you are working with a 6.17 rate on December 31 and 10.09 in September 2022, the Joy News report added.

    Countries and respective rate of depreciation against the US dollar

    Ghana – (60 percent)

    South Sudan – (50.8 percent),

    Sudan – (28.6 percent),

    Malawi – (25.4 percent),

    CFA Franc – (13.3 percent)

  • Ghana Cedi falls 40% to US dollar

    For nine months this year, the cedi has lost 40.05% in value to the US dollar, according to data from Bloomberg. This makes the cedi the second-worst performing currency in the world.

    The cedi is ranked as the worst among the 30 top-performing currencies on the African continent.

    In July, August and September the cedi lost almost 21% in value to the US dollar, pounds sterling and Euro.

    The cedi’s woes come on the back of high debts and low investor confidence which has made it impossible for Ghana to access the international capital market for borrowing.

    To this end, Ghana is seeking some $3 billion from the IMF to support its economic programmes.

    The government says the IMF support is to help the country recover from challenges caused by external factors such as the covid pandemic and the Russia-Ukraine war.

    Bank of Ghana interventions to stabilise the cedi:

    1. Once disbursed, the recently approved US$750,000,000 Afriexim loan facility by Parliament, is expected to boost Ghana’s forex position.

    2. The Cocoa Loan is expected in the last quarter of the year. This facility will also help provide more foreign currency to help address the cedi depreciation.

    3. Gold Purchase Programme to increase foreign exchange reserves.

    4. Special Foreign Exchange Auction for the Bulk Distribution Companies (BDCs) to help with the importation of petroleum products.

    5. Bank of Ghana is entering into a cooperation agreement with the mining companies to provide BOG with the opportunity to buy gold as when it becomes available.

    6. The Bank of Ghana is supporting the banking sector with foreign currency liquidity to help meet the demand for external payments.

    7. The IMF programme once finalised, will also go a long way to help restore confidence in the economy and drive portfolio flows. These measures will go a long way to increase the foreign exchange reserve position of the Central Bank.

  • Conservative Treasury Committee Chair asked to open Kwarteng and Truss investigation

    An investigation into “allegations of ‘insider trading’ before the recent collapse in the value of the pound against the US Dollar” is being pressed on the Treasury select committee’s Conservative chairman.

    Senior Labour MP Dame Angela Eagle, a member of the select committee, has written to chair Mel Stride requesting the cross-party group investigate any meetings held between financial traders and the chancellor and prime minister – before and after the mini-budget last week.

    In her letter, she writes: “Any suggestion or suspicion of private individuals using privileged access to profiteer from our country’s economic difficulties must be fully investigated.”

    Her letter has been signed by 31 Labour MPs.

    It is the latest of several demands for investigations that have been made in recent days.

    Yesterday, Lib Dem Treasury spokeswoman Sarah Olney said: “While struggling homeowners saw their mortgage bills spiral, it seems the chancellor was sipping champagne with hedge fund managers profiting from the falling pound.

    “How out of touch can you get? We need an official inquiry into this now.”

    Last week, shadow treasury minister Tulip Siddiq called on the Financial Conduct Authority to investigate whether “leaks” of last week’s mini-budget “contributed to the crash of the pound.”

  • Cedi ranked second worst-performing currency in the world – Bloomberg report

    According to a Bloomberg analysis, the Ghana Cedi has the second-worst performance of any currency in the world, trailing only the Sri Lankan Rupee.

    The Cedi’s value decline against the US dollar in the first nine months of 2022, according to the worldwide news portal, was the worst in more than 30 years.

    As a result of the development, the Ghana Cedi is currently ranked 147th among all major currencies worldwide.

    Bloomberg further said the performance of the Cedi has made it the worst among 30 top-performing currencies on the African continent.

    Ghana’s Finance Minister, Ken Ofori-Atta recently disclosed that the Ghana Cedi depreciated by 37.1 percent against the US Dollar as of September 27, 2022.

    At the start of 2022, demand for forex overtook supplies during a period when high debts and low investor confidence have made it impossible for Ghana to access the international capital market for borrowing.

    The situation resulted in the persistent depreciation of the Cedi against the major trading currencies.

    As at July this year, the cedi lost its value by more than 20 percent to the US dollar.

    In addition, recent economic downgrades by international rating agencies such as Fitch and Standards & Poors’ has also impacted the investor community at large, while Ghana awaits an IMF support programme which is expected to be accessed in 2023.

  • Chinese yuan: Exchange rate drops low against the US dollarUS dollar

    The Chinese yuan has fallen to new record lows in relation to the rising US dollar.

    The yuan, which is traded worldwide, dropped to its lowest level since statistics started to be made accessible in 2011.

    China’s domestic currency also reached its weakest point since the 2008 global financial crisis.

    It comes as the dollar continues to rise in value against other major currencies after the US central bank increased interest rates again earlier this month.

    Meanwhile, on Wednesday, major stock market indexes across Asia fell sharply.

    Hong Kong’s Hang Seng index closed 3.4% lower, Japan’s benchmark Nikkei index closed 1.5% lower and the Kospi in South Korea ended the day down by 2.4%.

    Many investors see the dollar as a safe place to put their money in times of trouble.

    That has helped to drive up its value against other currencies, including the British pound – which hit an all-time low against the dollar on Monday.

    Also on Wednesday, the dollar reached a fresh 20-year high against a closely-watched group of leading global currencies.

    The yuan’s slide is yet another example of a currency weakening as a result of the strong dollar.

    It is also about the very different paths China and the United States are taking in response to economic issues at home.

    The People’s Bank of China (PBOC) has been easing interest rates to revive growth in an economy ravaged by Covid lockdowns, while the US Federal Reserve is moving aggressively in the opposite direction as it tries to control inflation.

    Such a divergence is not wholly problematic, Joseph Capurso, head of international and sustainable economics at the Commonwealth Bank of Australia told the BBC.

    The fall in the currency’s value can actually be helpful for exporters within China, he said, because it would make their goods cheaper and so could increase demand.

    That said, exports only make up 20% of the Chinese economy these days, so a weak yuan will not turn around fundamental weakness domestically largely caused by Beijing’s zero-Covid strategy and a property crisis, said Mr Capurso.

    A weaker currency can also lead to investors pulling their money out of the country and uncertainty in financial markets – something Chinese officials will want to avoid with the Communist Party Congress coming up next month.

    The yuan’s fall has caused weakness in other currencies of developed economies in the region, including the Australian and Singapore dollar as well as the South Korean won.

    Last week, the Bank of Japan intervened to support the yen for the first time since 1998, after the currency weakened against the dollar.

    Asia’s emerging markets are vulnerable too – as they sell raw materials and components to China’s factories and so have increasingly become dependent on the yuan.

    Washington has in the past accused China of intentionally devaluing its currency to keep exports cheap and imports from the US expensive.

    While the strong dollar has rattled world markets, it is unlikely to deter the Fed from continuing to raise rates.

    “The strong dollar is working for the US market,” Dimitri Zabelin at the London School of Economics foreign policy think-tank said.

    “It will be a consideration but it will not weigh as heavy as domestic concern about inflation.”

    China’s central bank has been trying to slow the yuan’s slide by making it more expensive to bet against the currency. The PBOC also cut how much foreign currency banks have to hold.

  • Market maintains weaker economic growth outlook

    Market watchers are maintaining the forecast of weak near term growth, even though the Q2 economic results of 2022 exceeded projections.

    Provisional gross domestic product (GDP) figures from the Ghana Statistical Service (GSS) showed an oil and gas growth of 4.8 percent for the second quarter of 2022; an increase from the slowdown logged during the first quarter of 2022 at 3.4 percent.

    This is despite an escalating macroeconomic crisis brought on by rising inflation, a sharp depreciation of the cedi against the US dollar, and a tight monetary policy environment that has elevated borrowing costs.

    The Bank of Ghana increased its benchmark rate by a total of 750 basis points to 22 percent in order to combat inflation and re-anchor expectations.

    Thus, Constant Capital – a broker-dealer – cautions that although it might take time, the economy will certainly feel effects of the central bank’s hawkish monetary stance more strongly in the upcoming quarters.

    “While the impact may be lagged, we expect monetary tightening on the economy to be more impactful within the coming quarters. Elevated inflation, currently sitting 3.4x outside the BoG’s upper target limit at 33.9 percent, will also weigh on growth,” the broker-dealer said.

    Ghana’s growth is largely expected to be impacted by a number of additional factors, including depreciation as well as extraneous global factors like the protracted Russia-Ukraine war, global supply chain bottlenecks, volatile commodity prices, inflation, hawkish policy stances by major central banks and US recession risks.

    However, Constant Capital noted that the growth outturn in Q2-2022 suggests that the revised government growth projection of 3.7 percent in 2022 might actually be feasible.

    Commenting on the outlook, Apakan Securities – a market watcher – also affirmed the economy’s impressive Q2-2022 performance amid the worsened macroeconomic environment.

    “The 4.8 percent y/y growth rate recorded for the Ghanaian economy in Q2-2022 amid a worsened macroeconomic environment for this year reflects an impressive performance contrary to projections. Nonetheless, we think Ghana’s economic growth prospect will be tilted toward the downside, considering the amplified macroeconomic risks in the economy,” it stated.

    Moreover, the latest S&P Global Ghana PMI for Aug-2022 came in at 45.9, down from 48.80 in Jul-2022; and remained below the 50.0 neutral mark, signifying a continuous decline in private sector activity.

    Q2 sectoral Performance

    Despite growing by 4.6 percent year over year in Q2 2022, the agricultural sector experienced slower growth than in Q1 2022 when it grew by 5.7 percent, and in the same period last year when it grew by 11.87 percent. This may be related to the rising price of fertiliser and supply limitations brought on by the conflict between Russia and Ukraine.

    Following a string of quarterly contractions in the previous year, the industrial sector has continued to demonstrate a strong recovery. The sector experienced a turnaround from a 6.35 percent y/y contraction in the same period last year, growing by 4.6 percent y/y in Q2 2022 after growing by 1.3 percent y/y in Q1 2022. The two largest sub-sectors – manufacturing, mining and quarrying – both performed well and supporting the industrial sector’s strong recovery.

    The mining and quarrying sector grew by 4.4 percent y/y in Q2-2022 from a growth rate of 0.6 percent y/y in Q1-2022, while the manufacturing sector was the fastest-growing with an 8.8 percent y/y growth rate. However, in Q2 2022 the water supply and sewage sub-sectors decreased by 2.7 percent y/y and 2.2 percent y/y respectively, for the first time in five (5) consecutive quarters.

    The second quarter of the year saw robust activity in the services sector, with growth of 5.2 percent year over year (y/y) from Q1 2022’s growth of 3.7 percent. The sub-sectors of education, health & social work, and information and communication all contributed to this growth.