Simply days after registering marginal positive aspects towards the U.S. greenback, the Ghanaian forex — the cedi — slipped to C14:$1 versus the U.S. greenback on the international change parallel market on Nov. 7. The cedi’s reversal is claimed to have dented the forex’s restoration prospects. However, Ghana’s former president John Mahama and economist Steve Hanke have prompt that the nation’s inflation fee is way increased than the 37.2% which was recorded in September.
Cedi’s Interbank Change Fee Unchanged
Simply days after it marginally recovered from an all-time low, the Ghanaian forex’s change fee versus the U.S. greenback slipped past the 14:1 mark on Nov. 7, a report has mentioned. In accordance with the report, the cedi’s fall from C13.95 to C14.20 per greenback on the foreign exchange parallel market prompt that the forex’s much-talked-about restoration versus the buck 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 international currencies on the parallel market, the Financial institution of Ghana (BOG)’s Nov. 8 change fee information confirmed the cedi was buying and selling at simply above 13 models for each greenback. The truth is, for the reason that BOG’s Oct. 27 replace, the cedi’s interbank change fee versus the greenback has remained largely unchanged.
Ghana’s Actual Inflation Fee
After beginning the 12 months buying and selling above 6:1, the cedi, based on 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 increased 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 twenty years, President Nana Akufo-Addo was not too long ago quoted claiming that Ghana’s fee continues to be higher than that of Togo and Senegal.
Nevertheless, 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 prompt that Ghana’s meals inflation is round 122%, Hanke positioned Ghana’s inflation fee at 142%, the world’s third-highest fee.
In accordance with the economics professor’s newest inflation dashboard, the one international locations whose inflation charges surpass that of Ghana are Zimbabwe (417%) and Cuba (151%).
Register your electronic mail right here to get a weekly replace on African information despatched to your inbox:
What are your ideas on this story? Tell us what you assume within the feedback part beneath.
Picture Credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This text is for informational functions solely. It isn’t a direct supply or solicitation of a proposal to purchase or promote, or a advice or endorsement of any merchandise, companies, or corporations. Bitcoin.com doesn’t present funding, tax, authorized, or accounting recommendation. Neither the corporate nor the creator is accountable, instantly or not directly, for any harm or loss induced or alleged to be brought on by or in reference to the usage of or reliance on any content material, items or companies talked about on this article.
