GITFiC attributes depreciation of cedi to repatriation of profits by foreign companies

The Ghana International Trade and Finance Conference- GITFiC has attributed the depreciation of the Ghanaian cedi against the major trading currencies to repatriation of profits by foreign-owned companies than ever.

“This phenomenon is not new; however, it is characterised by market speculation, which is largely accounting for the current negative trend”.

A statement signed by Mr Selasi Koffi Ackom, CEO of GITFiC and copied to the Ghana News Agency in Accra has recommended to the Central Bank of Ghana to inject more forex into the market without hesitation.

“The GITFiC has noticed with great concern the seemingly declining value of the Ghanaian cedi against some major trading currencies, most especially the United States Dollar and the European Euro”.

It said the cedi, which had enjoyed a fairly stable condition throughout the third and fourth quarters of 2023, had rather seen a marginal depreciation in the early period of the first quarter of 2024.

“The Ghanaian cedi may not be appreciating as expected despite government’s several interventions through the monetary policy framework, such as the gold for oil, freeze on supply of USD for the importation of certain commodities, gold purchase reserve of the Bank of Ghana.”

 It said the expected $200 million, as announced by the immediate past minister for finance, should be deliberately targeted at specific reactionary areas to give the Ghanaian cedi some respite.

“The Bank of Ghana should not relent but continue to weed out dubious forex operators from the market, tighten their regulations, and enforce strict compliance across board.”

Source: GNA