Players in the business sub-sector have complained about the inconveniences of the volatilities of the local currency, the Ghana Cedi.
Leave the Cedi to fall to its normal level- Dr. Mensah
Local businesses have expressed immense displeasure over the volatility of the currency as it has made it close to impossible to price their wares, charges, and contracts.
The Ghana Cedi has seen close to a 30 per cent depreciation since the beginning of 2016. A sharp decline in value int the first quarter of the year, pushed the Bank of Ghana to increase its dollar injection into the market from 14 million dollars a week to 20 million dollars a day. This led to a massive appreciation against the dollar rising from GHC4.2 to GHC3.3.
This appreciation however lasted for two weeks only after which the Cedi went back to its usual downward slide. There were reports that the Bank of Ghana had stopped the dollar injection into the market hence the fall against the dollar from 3.3 to the current average of GHC3.9.
Meanwhile, a lecturer of Business and Finance at the University of Ghana's Business School, Dr. Lord Mensah is charging the Central Bank to stop inducing the appreciation of the Cedi, by increasing the supply of the Cedi.
According to the Banking and Finance Expert,
Dr. Mensah added when the Cedi falls to its original position owing to demand, supply, and other economic force, we can better plan on lasting solution to make our local currency stronger. But the current measures by the Bank of Ghana will certainly not help the situation. It appears to be a very expensive venture, that is the Central Bank even has the money to keep such massive dollar injections."
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