In the retail currency market, the value of the Ghanaian Cedi has surpassed GH¢16 in relation to the US Dollar.
According to a study carried out by the Citi Business News team in many banks and currency bureaus in Accra, the dollar is being sold for between GH¢15.95 and GH¢16.20.
This move comes as the Bank of Ghana’s dollar auction limits were recently relaxed by the International Monetary Fund (IMF) in response to a major increase in the nation’s reserves under a US$3 billion economic recovery program.
The Bank of Ghana’s July 2024 Summary of Financial and Economic Data states that as of July 2024, the Cedi’s value on the interbank foreign exchange market decreased by about 19.6% in relation to the US dollar. This depreciation rate is marginally less than the retail market’s 21% fall.
Upon visiting many forex bureaus in the capital, the Citi Business News team was informed by some of the operators about the present state of the economy and the new mandate from the Bank of Ghana requesting Ghana cards as identification proof from clients prior to providing any services.
Bernice Arthur, an operator of a forex bureau, observed: “You know, things are hard now.” Customers would therefore ask us to lower the charges when they arrive, and doing so would have an impact on the company as well. Therefore, we haggle, and occasionally the clients walk out. At other times, too, we must bow down to them in order to maintain our business.
In the meantime, Edward Lawson, another Forex bureau operator, connected the sluggishness of his company’s operations to foreign exchange hoarding ahead of increased rates.
“Business has become slow because some are waiting for the dollar to rise before they come and change, which is very bad.”
Wilson Zilevu, an economic and fixed income analyst, found that market sentiment was a major contributor to the high exchange rates.
“Speculative behaviour of foreign exchange dealers is all churning out today. Recently, the central bank also organized a seven-day option for foreign exchange dealers where they can lock in their prices.”
He pleaded with the Bank of Ghana (BoG) to let business stakeholders know that foreign exchange is available in the mark.
