12/21/2023 0 Comments Us dollar to ghana cedis![]() “The challenge is the possibility of fake notes, but I have a trusted person I deal with here so that isn’t a problem. These people are well connected so they can easily help you get as much money as you want to change,” Nsiah tells The Africa Report. Regulatory constraintsĪt the Rawlings Park in the central business district, Kojo Nsiah, a small business owner, says he prefers the black market to the interbank not only for the higher rates, but also to avoid regulatory constraints. ![]() In the short term, there can be some impact, but going forward, let’s reduce the gap between the official and the parallel market rates,” says Dzansi. “Arresting the illegal operators is not sustainable. On the black market, the greenback is traded at GH¢10.5. The dollar is traded at GH¢9.5 ($0.92) in most commercial banks and at lower rates in forex bureaus. The cost of 8 United States Dollars in Ghana Cedis today is ¢94.08 according to the Open Exchange Rates, compared to yesterday, the exchange rate increased by 0.04 (by +¢0.0050). If the exchange rate was reflecting the true value of the cedi, the illegal market not be vibrant.” “The Bank of Ghana’s exchange rate is not reflective of the true demand and supply fundamentals. “The parallel markets are a symptom of an exchange rate market, which is not realistic,” he says. James Dzansi, an economist at the International Growth Centre, tells The Africa Report that raiding the black market will not stabilise the local currency for long. Unrealistic ratesĬentral bank officials say black market trading, which is very popular in Accra, leads to speculation over the exchange rate, and thus destabilises the cedi’s value.Īrresting the illegal operators is not sustainable ![]() According to Ghana’s statistical service, inflation hit a 21-year high of 33.9% in August, up from 31.7% in July partly due to the cedi’s steep slide. However, the tightening cycle has hardly reversed the trend. The central bank hiked rates three times in March, May and August, with the Monetary Policy Rate currently standing at 22%. The cedi has fallen 39% against the US dollar since January 2022. “This special operation is part of the bank’s strategies to sanitise the foreign exchange market and we’re targeting people buying and selling foreign exchange without a licence from the Bank of Ghana,” she said. ![]()
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