Business News of Saturday, 25 January 2025

Source: www.ghanaweb.com

Cedi adjusting to its true market value after manipulation - Economist

Financial economist, Professor Lord Mensah Financial economist, Professor Lord Mensah

Financial economist, Professor Lord Mensah, has asserted that the local currency, Cedi, is now adjusting to its true market value after a series of manipulations last year.

The Bank of Ghana, in its efforts to curb the depreciation of the cedi, sold over $200 million in the last quarter of 2024.

But speaking entirely on the performance of the currency, he said the cedi was artificially influenced to create a favourable economic impression during the election period.

Professor Mensah, however, noted that the local currency is likely to witness some stability from March this year.

In a tweet sighted by GhanaWeb Business, the financial economist called on the Mahama-led administration to urgently reduce dollar demand activities by the government and various businesses.

"The cedi is now finding its level after it was manipulated to influence the election outcome. First-quarter seasonal demand has also set in. Likely to see some stability from March. The need to work quickly to reduce dollar demand activities by government and businesses," he said.

Meanwhile, the cedi has experienced marginal gains against major trading currencies, especially the dollar, at some forex bureaus.

The Central Bank, in its daily update, indicated that the cedi is trading at a buying price of GH¢15.11 and selling at GH¢15.12.

The British pound is being bought at GH¢18.62 and sold at GH¢18.64.

The euro trades at a buying price of GH¢15.72 and a selling price of GH¢15.73.

Checks by GhanaWeb Business on January 24, 2025, show that the cedi is trading at GH¢16.10 to the dollar, while the pound is trading at GH¢19.60 at some major forex bureaus across the country.

Additionally, the euro is trading at GH¢16.60 on the retail market.

Read his tweet below:



Watch the latest edition of BizTech below:



Click here to follow the GhanaWeb Business WhatsApp channel