Business in Ghana

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Posts Tagged ‘Cedi Depreciation’

Ghana Economic Review and Outlook 2013 and the Dawn of the Dutch Disease

Posted by Business in Ghana on October 20, 2012

DATE: Thursday 25th October 2012      TIME: 8.30 a.m. prompt

Venue: British Council Hall, Liberia Road, Accra

Major Findings

Currency crisis has been brought under control

Over the first half of this year, the cedi lost about 20 percent of its value against the US dollar in the foreign exchange markets. It stabilized somewhat between July and August, reaching a peak of GHᄁ1.9565 per US dollar in late-August, and thereafter gradually gained in value /recovered to the current GHᄁ1.8938 by mid-October. Barring any adverse developments, CEPA projects an end-year rate of GHᄁ1.85 per US dollar. For the year as a whole this would mean a cumulative loss in the value of the cedi by about 13 percent. Read the rest of this entry »

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Election Year Excesses, Cedi Depreciation, and Inflation The Current Experience

Posted by Business in Ghana on June 16, 2012

Source: Center for Policy Analysis, Ghana.  http://www.cepa.org.gh

Every election year in the Fourth Republic, especially the hotly contested ones, has been associated with excesses (in spending and behavior), rapid depreciation of the cedi, and accelerating inflation. The most recent to such years is election year 2000 when the excesses led to an exchange rate depreciation (number of cedis per US dollar) 0f 100 percent from 3,500 old cedis at the beginning of the year to 7,000 at the end of the year.

The next after that was election year 2008 when election year excesses led to a fall in the value of the cedi from 1.0152 cedis / dollar in June 2008 to 1.4524 cedis / dollar in June 2009  a year-on-year depreciation of about 43 percent which was halted only by the stabilization program agreed with the IMF. Read the rest of this entry »

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State of the Nation. Critical News, 13th May 2012

Posted by Business in Ghana on May 13, 2012

Sydney Casely-Hayford, Sydney@bizghana.com

Mahamadu Bawumia’s “state of the nation’s economy” speech excited the NDC to no end.  A kink in the NDC campaign armour, seems to have thrown the ruling Government into a complete tizz.  After Deputy Finance Minister Fiifi Kwetey and Deputy Information Minister Samuel Ablakwa did their discrediting tour last week, this week’s salvo came from two Government Institutions.  The Ghana Statistical Service because they felt slighted by Bawumia, held a press conference to disparage his views and label him a dangerous academic, and the Ministry of Finance and Economic Planning took out a double page advertisement in the Daily Graphic to “set the records straight”. Read the rest of this entry »

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