Published:
Total Pages: 0
Get eBook
The exchange rate of the Ghana cedi against, for example, the US dollar is quoted as the number of Ghana cedis required to purchase one US dollar (as also for the British pound sterling or the euro - the key major currencies in Ghana's international trade with the rest of the world). [...] In order for the appropriate corrective action to be taken, however, the BOG must determine whether the unexpected change is more the consequence of the policy stance in Ghana or of that of the US Federal Reserve - the corresponding central bank of the United States of America. [...] At the beginning of the period, on average, for the month of December 2008, the exchange rate of the cedi against the US dollar in the interbank market was1.1974. [...] The abnormality of the depreciation that occurred from the beginning of this year to April 2012 can be seen in the steepness of the curves - strength of depreciation - and in the degree of divergence / spread between the interbank and forex bureau rates. [...] 13 The interventions by the BOG in the foreign exchange market have, however, not been sufficient to stem the downward trend in the cedi; and concerns have been raised by the central bank governor over the divergence in the rates quoted by traders operating in minor segments of the market.