By Edward Nyarko
The Cedi is projected by Fitch Solutions to recover some of the grounds it lost to the dollar in the next couple of months. The months of February and March, this year saw the Cedi depreciating by almost 15.6 percent.
But after the announcement by the Finance ministry that it will inject about 2 billion dollars into the economy, the pace at which the local currency was losing its value to its trading partners especially the greenback stabilized.
Also, the Bank of Ghana announced a raft of measures increasing cash reserve of commercial banks to 12%, Capital Conservation Buffer was reset to the pre-pandemic level of 3% making the Capital Adequacy Ratio a total of 13%. The Cedi began the year 2022 at 6 Cedis 25 pesewas to the dollar, but now it is trading at 7 Cedis 44 pesewas.
The local currency came under severe pressure in the first three months of 2022, making it the worst-performing currency on the African continent during the period.
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