Ghana has struggled throughout the week to arrest the ever fast paced dollar. The free continuous fall of the cedi against major international currencies continued though out the week with the dollar becoming strongest by the minute.
The continuous weakening of the cedi means that business and individual transacting business across the globe from Ghana kept paying more for the same value of goods and services by the minutes. The Dollar continues to be strong against the Ghana cedi because we are unable to manage the current issues facing the economy. This has been attributed to the low level of export by Ghana as against the high volumes of import which requires Ghanaian businesses to raise more of the foreign currency and since demand outweighs supply, the rate keeps escalating making businesses suffer.
The dollar continues to be strong as cedi loses value and as at the time of publishing this article,1$ was been exchanged for GH$ 5.75 and had increased from 5.56 GHS for the same $1 on Thursday, March 14, 2019. The Cedi may continue to lose value when business resumes on Monday. It is anticipated that $1 may be exchanged for not less than GH6.00 by close of next week if nothing is done to keep the dollar in check.
This week has seen a lot of agitation as a result of the continuous lost of value of the cedi against the dollar. As at the end of March 2018, a $100 was valued at GHS 441.00, today, the same $100 is going for 574.78. The simple implication of this is that, anyone who bought a product worth $100 last year in March and paid a cedi equivalent of GHS441.00 will have to increase the cedi equivalent by (GHS574.78-GHS441.00) GHS133.78 more for the same product is the price remained the same. This also means that, the cedi has lost value up to the cedi has lost value up to 30.34%.
Thus every GHS100 you have today has lost value by 30.34 % or you will need to add 30.34% of the amount to be able to trade on the international market today after a year.
On social media throughout the week, the general public has lambasted government for failing to manage the economy and the dollar for that matter. Many have teased the Vice president in recent times for failing to arrest the dollar as he promised ahead of the 2016 elections.
The Vice President happens to be the chairman of the country’s Economic Management team. However, rumor making rounds on social media seems to suggest that the Vice president has been directed by the president to take over the position.
Government in an attempt to ensure the economy functions properly and disciplined established the Ghana’s Fiscal Council & Financial Stability Council was established in December headed by Paul Acquah as its Chairman to among other things see to the development of policies that will ensure the prudent and sustainable management of our public debts, help achieve efficiency as well as value for money when it comes to public expenditures.
Government , the Ghana Economic management team and the Fiscal council must all work hard to bring back the confidence that businesses and their owners are gradually loosing and contain the free rising dollar as soon as possible.