Business in Ghana

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Posts Tagged ‘Cedi’

Fear Not, NDC Got Your Back. Critical News, 15th June 2014

Posted by Business in Ghana on June 15, 2014

Sydney Casely-Hayford, sydney@bizghana.com

I reconnected with my very good friend Adams during the week.  He called; we arranged lunch and met at the Imperial Peking to catch up on long past jokes from the Zoology department where we spent many an afternoon trying to understand snakes and snails, Legon-style.

It was a good lunch, we explored all the possibilities on the menu and finally settled for shrimp fried rice, soup noodles and wonton soup starter.  Made a big difference from my usual chop bar banku and okro soup or fufu from around the corner at Asylum Down.

Adams is an NDC faithful, comes from dedicated party stock and we were reminiscing about days gone by and the observed habits of the red ant from Mango and Neem trees; the things people discuss at lunch, eh?

We avoid talking politics, because we have had too many historical run-ins, but unfortunately, today’s lunch was to be an exception.

So I was recanting how I recently noticed trains of Solenopsis invicta (or red fire ants for those of you who did not take zoology seriously), in single line convoying from one end of my driveway to the other.  I found this rather strange, because red ants don’t often leave their residencies, preferring to create mounds to protect their Queen.

They are a very busy lot, strategically organized in defense and attack.  Created not to die too easily, they breathe through a system of tracheal tubes, able to revive gases to the double bulbs connecting internal organs and tissue.

So we are being academic and really getting into the subject when we are interrupted by a group of Daily Guide readers who recognize me from my page 28 column and also a few appearances on TV.

I end courtesies and return to Adams, who pops me a left hook question, throws me off and I reel back, bowled over.

“Have you heard that Nana Addo will be using a helicopter for his campaign this year?” Read the rest of this entry »

Posted in Critical Weekly News, Sydney Casely-Hayford | Tagged: , , , , , , , , , , , , , | Leave a Comment »

Zambia’s lesson for Ghana: call the IMF

Posted by Business in Ghana on June 10, 2014

by Javier Blas, Reuters

When Zambia last week approached the International Monetary Fund for financial help, another cash-strapped African country was surely watching: Ghana.

Lusaka and Accra face similar problems: runaway fiscal deficits – the result of electorally-driven increases in public sector salaries – and a swelling current account deficit that is pressuring the exchange rate.

The market response to Zambia’s request should convince Ghana to seek help, too.

By all accounts, the fiscal problem is more severe in Ghana than in Zambia. The ruling National Democratic Congress introduced in Ghana a new public sector salary structure in 2010. After a wave of salary hikes, the government’s wage bill now consumes roughly 70 per cent of the country’s tax revenue.

The market was expecting that Ghana would first approach the IMF. Instead, Zambia last week asked the IMF to discuss “an economic programme that could be supported by a fund arrangement.” The market reaction has been very positive, officials say.

The Zambian currency, the kwacha, has appreciated sharply against the dollar. At one point this year, it was down 27.5 per cent against the US dollar since January, making it the worst performing currency in Africa. But after rallying strongly over the last week as rumours of the IMF plan surfaced, it has cut its losses to 16 per cent. Read the rest of this entry »

Posted in Financial Services, Uncategorized | Tagged: , , , , , | 1 Comment »

“I Command The Falling Cedi To Rise In Jesus’ Name” Is This A Bad Joke, Duncan-Williams?

Posted by Business in Ghana on February 2, 2014

Ben Ofosu-Appiah, Tokyo, JAPAN.

Only last week I wrote an article here on how we black folks sometimes allow our critical faculties, our ability to rationalize and think critically and have a pragmatic and scientific evaluation of facts and the evidence to be drown out by blind and unquestionable acceptance of things that defy reason and logic and are packaged and sold to us in the name of religion.

Everybody knows that the Ghana cedi has been in a free fall and the government has proven incapable so far in dealing with the situation. Investor confidence in the economy is low and business confidence in the country is reported to be at an all time low according to a recent report in the Daily Graphic.

The cedi has already depreciated by three per cent against the major international currencies this month. The US dollar, which sold at Ghc2.20 on the local foreign exchange market before Christmas last year, now sells at Ghc2.60. The British pound, which sold at Ghc3 now sells at Ghc4.20. The euro and CFA are also selling at Ghc3.50 and Ghc4.80 respectively. In 2013, the local currency suffered 17-per cent depreciation. The year-on-year depreciation shows a 21.96 per cent depreciation of the cedi against the dollar; 28.88 per cent against the pound sterling; 23.98 per cent against the euro and 25.54 per cent against the Swiss franc.

Read the rest of this entry »

Posted in Ben Ofosu-Appiah, Politics | Tagged: , , , , , , | Leave a Comment »

So why all the Fuss about Ghana’s 2011 Budget?

Posted by Business in Ghana on November 28, 2010

Courtesy of IMANI (www.imanighana.org) and AfricanLiberty.org

Ghana’s latest budget has been met with uproar in some quarters.

There is no dismissing or diminishing the fact that under trying circumstances the ruling government has been working hard to balance its books and stabilise the economy.  There may be some disputes over the precision of measurements and accounting conventions, but the evidence does point to some clear successes on the macroeconomic front.

The strengthening cedi has of course led to a significant boost in imports, but in real terms (accounting for inflation) the increase is in line with recent trends in the current account, and is thus not exactly scary (which is what you would expect if the currency had been artificially overvalued). Read the rest of this entry »

Posted in Financial Services, Franklin Cudjoe | Tagged: , , , , , , | Leave a Comment »