Yuan helps to stabilize Ghana Cedi

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March 22, 2016 1:15 PM

Between January to March the Ghana Cedi has experienced 1.4% compared to the first quarter of 2015 where the currency saw as much as a 15% depreciation in the Ghana Cedi.

Reports from the Bank of Ghana have shown that the local currency, the Ghana Cedi has stabilized in the first quarter of 2016.

This is in comparison with the first quarter of 2015.

The positive result has been attributed to the Bank of Ghana’s decision to diversify the currencies used in trading by the importers.

Economist Dr. Adu Sakordie tells Pulse Business that the introduction of other foreign currency like the Yuan has alleviated pressure off of the Dollar, thereby ensuring that the local currency stabilized against the U.S Dollar.

“ Yes, I will say the introduction of the Yuan, especially for local importers who trade with China has helped boost the strength of the Ghana Cedi against the Dollar.”

The economist added that general confidence in the Bank of Ghana’s ability to stabilize the local currency has also grown over the past 6 months.

“ You also recall that around June 2016, when the Bank of Ghana announced that it will pump 20 million dollars into the economy daily to stabilize the Cedi against the Dollar, we were sceptical that they could do not. However, the relative stability seem to have restored the confidence in the Central Bank’s ability to deal with the situation, hence the performance of the Cedi”.

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