Cedi is being irretrievably destroyed while economic managers look on – IEA

Senior Economist, Dr. John Kwakye, has lamented the rate of depreciation for the Cedi against major trading currencies particularly the US dollar. Checks by GhanaWeb Business at some forex bureaus in Accra show that the cedi is selling at GH¢13.65 to $1 as of October 20 while the Bank of Ghana is selling at a rate of GH¢11.31 as of October 19. The development represents a new but rather concerning low for the currency which has been ranked as the worst-performing currency in the world against the US dollar, overtaking the Sri Lanka Rupee. In a tweet posted on October 19, the Director of Research at the IEA expressed concern over the economic managers looking on while the cedi continues to struggle against major trading currencies. “Sadly, the cedi is being irretrievably destroyed. And all we do is look on. Why can't our economic managers come up with a plan to arrest the situation?” the Senior Economist quizzed.

Sadly, the cedi is being irretrievably destroyed. And all we do is look on. Why can't our economic managers come up with a plan to arrest the situation?— J. K. Kwakye (@JohnKwabenaKwa1) October 19, 2022 The performance of the cedi is likely to exert further pressure on the economy with many citizens already grappling with soaring inflation pressures, high cost of living, fuel prices and tariff hikes. In the past few weeks, the cedi has been experiencing a persistent decline against the dollar - a move that has forced the Ghana Union of Traders' Associations to close down their shops from October 19, 2022. Meanwhile, government has commenced negotiations with the International Monetary Fund in hopes of securing an economic support programme aimed at restoring macroeconomic stability. MA/FNOQ Watch the latest episode of BizTech below: