Government’s announcement of fresh dollars into the economy to arrest the unbridled appreciation of the United States dollar has succeeded in redeeming some value for the local currency against the greenback.
The dollar was trading at GH¢5.60 a few weeks ago but within just a week of the announcement of Ghana’s ability to successfully raise $3 billion from international financial institutions through a three-tranche Eurobond which attracted more bids than the country asked for, the dollar has ceded some 80 pesewas to the local currency.
On Tuesday, March 19, 2019, at the close of a roadshow in London, the subscription for the 2019 sovereign bond had swelled, resulting in orders totalling $21 billion.
DGN Online checks on the forex market on Monday, March 25, 2019, showed that a dollar was selling at GH¢4.70. The dollar is expected to further lose value against the cedi when the $3 billion is injected into the economy.
At the Global Exchange Forex Bureau at Mallam, Accra, $100 exchanged for GH¢470.
On 2nd January, the cedi sold at GH¢4.83 to a dollar, losing value without fail to end January at GHC 4.95. The loss continued through February beginning at GHC 4.95 to a dollar and hitting GH¢5 by February 9th.
Ending February at GH¢5.16 to a dollar on the interbank foreign exchange market, it further depreciated by 8 pesewas to reach GH¢5.24 by March 12 and continued to maintain that position for close to a fortnight before taking an ascent to sell at GH¢5.16 on March 22, 2019.
Analysts have meanwhile indicated that borrowing to support the local currency was not sustainable.
They have appealed for the introduction of long term measures to develop the structural needs of the economy and help check the depreciation.