The Cedi’s Depreciation Against US Dollar Is Causing Major Panic Among Ghanaians

The performance of the local currency against the US dollar especially, has left many Ghanaians and market watchers in panic mode.

As at the end of Friday, August 12, 2022, the local currency was selling above GH¢9 to the US dollar with renewed fears of the currency heading toward the GH¢10 mark by next week.

Akufo Addo and Bawumia

Since the start of this year, the cedi has recorded a free fall against major trading currencies as 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.

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

On popular micro-blogging site, Twitter, the performance of the cedi has resulted in huge public outcry.

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

Meanwhile, some tweeps who shared their sentiments over the cedi’s performance against the US dollar expressed concern over the fast pace of depreciation.

“The cedi is not even fighting for its life anymore. My guy has given up,” one tweep wrote.

“Never thought I’d live to see dollar at GHc 7. Then it hit GHc 8 and it slowly climbed to GHc 9. Now I have to accept that dollar will surely hit GHc 10 by Tuesday morning. Totally unbelievable herh hmmm,” another said.

See the reactions on Twitter below:



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