The slide of the Ghanaian cedi against the dollar in early 2022 suggest tough decisions are urgently needed to limit the impact on an already fragile economy.
A slide of over 15% against the dollar by early March meant that the cedi was the worst-performing major currency in Africa.
Thus, a weakening cedi leaves Ghana exposed to higher food prices prompted by the war between Russia and Ukraine.
Many factors lie behind the cedi’s depreciation. Businesses in Ghana need foreign currency to buy their imports, increasing pressure on the currency.
Some analysts have argued that the depreciation is at least partly seasonal, given that February to March is the period during which Ghana-based multinationals repatriate profits.
It’s at the back of the extreme depreciation of the cedi that DJ Reuben of Luv FM fame has sarcastically said that the current 100ghc note in hand is like 1ghc.
He, therefore, prayed for the goodwill of the 100ghc note else living in Ghana would be more than hell going forward.
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