Ghana’s local currency – Cedi – has been suspended by cross-border payments company, Wise (WISEa.L), after its appreciation against major trading currencies, especially the US dollar this week, Reuters has reported.
According to the news portal, the Spokesperson of Wise said the decision was based on the fact that it has become costly to move money from Europe to Ghana.
The spokesperson noted that only a few of customers’ transfers were affected and they would start transfers to Ghana “as soon as the situation has stabilised.”
According to data released by Refinitiv Eikon, the Ghana Cedi has appreciated against the dollar by 47%.
On the interbank forex rates from the Bank of Ghana Friday, December 16, 2022, the Ghana Cedi is trading against the dollar at a buying price of 7.9975 and a selling price of 8.0055 as compared to yesterday’s trading of a buying price of 9.2954 and a selling price of 9.3047.
At a forex bureau in Accra, the dollar is being bought at a rate of 9.00 and sold at a rate of 10.50.
GCB buying at 7.5 and selling at a rate of 9.7
The cedi has since the start of this year suffered persistent depreciation against major trading currencies, especially the US dollar.
Bloomberg in the previous months adjudged the world’s worst-performing currency against the US Dollar.
Bloomberg reported that the cedi lost about 45.1% to the US dollar this year to sell at GH¢11.2625 per dollar.
This made the cedi’s depreciation the worst among 148 currencies tracked by Bloomberg, overtaking Sri Lanka’s rupee whose depreciation has been 44.7%.
Today, the cedi is the best performing currency.
Many Ghanaian seems not too happy as the appreciation of the cedi has not affected market prices and inflation is at the highest level.
Inflation for November as reported by the Ghana Statistical service is 50.3%
Some Ghanaians also fear as this appreciation of the Cedi might be temporal and are asking Government to tighten it’s belts to make things stable.