Simply days after registering marginal features towards the U.S. greenback, the Ghanaian foreign money — the cedi — slipped to C14:$1 versus the U.S. greenback on the overseas alternate parallel market on Nov. 7. The cedi’s reversal is alleged to have dented the foreign money’s restoration prospects. Alternatively, Ghana’s former president John Mahama and economist Steve Hanke have steered that the nation’s inflation fee is far larger than the 37.2% which was recorded in September.
Cedi’s Interbank Change Charge Unchanged
Simply days after it marginally recovered from an all-time low, the Ghanaian foreign money’s alternate fee versus the U.S. greenback slipped past the 14:1 mark on Nov. 7, a report has stated. Based on the report, the cedi’s fall from C13.95 to C14.20 per greenback on the foreign exchange parallel market steered that the foreign money’s much-talked-about restoration versus the dollar is unlikely to occur any time quickly.
Financial institution of Ghana Change Charges pic.twitter.com/oognH3AM42
— Financial institution of Ghana (@thebankofghana) November 4, 2022
Regardless of its newest fall versus main world currencies on the parallel market, the Financial institution of Ghana (BOG)’s Nov. eight alternate fee knowledge confirmed the cedi was buying and selling at simply above 13 models for each greenback. In actual fact, because the BOG’s Oct. 27 replace, the cedi’s interbank alternate fee versus the greenback has remained largely unchanged.
Ghana’s Actual Inflation Charge
After beginning the 12 months buying and selling above 6:1, the cedi, in keeping 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 larger 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 fee surge previous 37% in September. Regardless of this being the nation’s highest inflation fee in 20 years, President Nana Akufo-Addo was lately quoted claiming that Ghana’s fee remains 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 solid doubts over the genuineness of Ghana’s official inflation fee figures. Whereas Mahama steered that Ghana’s meals inflation is round 122%, Hanke positioned Ghana’s inflation fee at 142%, the world’s third-highest fee.
Based on 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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