Ghanaian farmer and politician John Dumelo took to Twitter to explain why the Ghanaian Cedi has performed well versus the US dollar in recent days.
According to him, the US Dollar is underperforming in December since importers are no longer in demand owing to the holiday season.
He also stated that the US Dollar is currently in the system as a result of tourists and other visitors who are in the country for the holidays.
“$$ will keep coming down in the next few weeks. Reason: 1. Importers don’t need $$ now, they have enough goods for the Xmas period. 2. $$ are in the system due to Xmas visitors,” he wrote.
The cedi, which had lost more than half its value over the year, gained 10% versus the US dollar. The Cedi to Dollar exchange rate reached $1 to more than GH15 earlier this year, but it now trades just above GH12.50 to the dollar.
Ken Ofori-Atta, Ghana’s Minister of Finance, stated in the 2023 budget statement that the devaluation of the Ghanaian Cedi in fewer than 11 months this year added GH93 billion to the country’s national debt.
On December 4, 2022, the government unveiled a debt operation exercise named “Domestic Debt Exchange,” which detailed the nature of debt restructuring for domestic creditors. This will pave the door for the much-needed $3 billion IMF rescue package.
In response, Mr. Dumelo stated that the dollar may rise in January as importers return to work and significant international corporations must repatriate profits.
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