A Ghanaian Journalist- Benard Avle, has revealed the causes of the Ghana Cedis depreciating, against the world major currencies such as the United States dollar and the British Pounds.According to Benard Avle, he has noted, that some foreigners are redirecting their investments from Ghana, a situation that moves dollars out of the country. Benard Avle, who is the host of 'Citi Breakfast Show Host' on City News, again stated that, “The Increase in interests rates in world markets, has made portfolio investors disinvest their investments here”. Speaking on Eyewitness News, Avle noted that, “You make GHS 10 million, convert it into dollars to send to shareholders, so they [the companies] are looking for more dollars"; adding that, because importers were buying goods on credit towards the end of the year, attempts to pay back, which is in the dollar currency, have contributed to the struggles of the Cedi.
Avle further revealed that, “You also don’t produce enough things here, and your importers are looking for dollars to pay for things they bought in January, and all of this coincides between February and March. The inflation has been largely driven by the increase in fuel and increase in transportation fares, which has affected food inflation as well". According to Mr. Avle, he expects that, some reliefs will come from the energy sector; following months of inflation, that led to an increase of the policy rate by 250 basis points to 17 percent.
blogpay
According to Mr. Avle, he expects that, some reliefs will come from the energy sector; following months of inflation, that led to an increase of the policy rate by 250 basis points to 17 percent.
Total Comments: 0