Dr. Ernest Addison, Governor of the Bank of Ghana, Monday said, several factors account for the depreciation of the local currency He, therefore, attributed the depreciation of the local currency to the day-to-day pressures on the economy. Although the cedi appreciated against the dollar during the last two months of 2022, it is currently depreciating further against the dollar.
The cedi which appreciated GH¢8 to a dollar around December 2022 is currently selling GH¢13 to a dollar. Dr Addison explained when he appeared at the Public Accounts Committee (PAC) of Parliament that the cedi depreciation reflected the movement daily. He said: “If there is additional demand for the cedis the currency will be restricted.
The Central Bank cannot fix the exchange rate, it depends on what transactions have taken place…like payments to contractors.” “Typically, that kind of payment can move the exchange rate because some of them immediately convert into foreign exchange. So, the exchange reflects a lot of day-to-day pressures in the economy,” he said.