Ghana Traders Close Shops For Three Days Over Inflation, Falling Cedi

• Traders in Ghana have shut their shops in protest of the raging inflation and falling currency
• The traders said that they want the government to accelerate its effort to rejuvenate the economy
• The country’s currency, the cedi, is currently rated the worst-performing currency in the world against the dollar

Ghanaian traders shut down their businesses for three days to protest crippling inflation and the falling local currency, the cedi.

Bloomberg report said that the Ghana Union of Traders Association would stop commercial activities in the Capital, Accra, from Wednesday, October 19, 2022, to vent their frustration over weakening currency, surging inflation and high lending rates.

Ghana moves to obtain loan from IMF

The traders will also protest against weakening currency, rated the worst-performing currency in the world.

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Representatives of food sellers, clothes, electrical parts and other goods said the traders want to send a message to the government that whatever solution they bring, they should do so with a sense of urgency.

The Ghanaian government is in talks with the International Monetary (IMF) for $ 3 billion in funding support after the country lost the global debt market this year.

The government seeks to agree with IMF in the coming weeks to help finance its economic programmes.

Foreign investors have been exiting the country, prompting concerns over the sustainability of the country’s debt, which has contributed to a 47 per cent depreciation of the cedi against the dollar this year.

Currency depreciates to 45 per cent

The depreciation has revved inflation, which climbed for 15 consecutive months until the statistics office changed its price measurement methods. Annual inflation stood at 37.2 per cent in September.

The country’s central bank increased its benchmark lending rate by 10 per cent points this year to 24.5 per cent to tame price hikes, support the currency and entice investors. The move led to increased borrowing costs for traders.

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The cedi trades at 11,250 per dollar on the streets of Accra and in the official market.

Ghana's Cedi becomes worst currency in the world, exchanges for 11, 250 per dollar

Legit.ng report that while Nigerians are crying over the shambolic performance of their local currency, the naira exchanging for N741 per dollar on Monday, October 17, 2022, their West African neighbour, Ghana's cedi, emerged as the worst-performing currency in the world.

Bloomberg reports that Ghana's cedi plummeted to become the world's worst-performing currency in 2022 as investors continue to pump foreign currencies into the country as it inches closer to a deal with the International Monetary Fund (IMF).

The cedi fell to as much as 3.3 per cent on Monday, October 17, 2023, to exchange for 11.2750 cedis per dollar as of Monday afternoon in the capital, Accra.

Source: Legit.ng