The withdrawal of foreign exchange for the import of non-essential commodities including rice could constrain foreign exchange liquidity and worsen its demand-supply disparity.
The Bank of Ghana announced the withdrawal of foreign exchange support for the import of what the government classifies as non-essential commodities. They included rice, poultry, cooking oil, among others.
Though analysts such as Databank Research welcomed the initiative as the government strives to preserve its dollar reserves, they believe the move could constrain foreign exchange liquidity.
Against this backdrop, they anticipate the depreciation of the local cedi to intensify in the retail market, while seeing gentle movements in the interbank market this week.
The cedi closed weaker last week, depreciating by 1.69% to the dollar. It also lost 3.54% and 4.01% to the pound and the euro respectively.
The cedi closed trading last week at a bid/ask rate of ҃¢13.10/ؓ¢13.11 to the US dollar on the interbank market and ¢14.5/¢15.00 at the forex bureau market.
Latest Stories
-
We’ll cut down imports and boost consumption of local rice and other products – Mahama
2 hours -
Prof Opoku-Agyemang donates to Tamale orphanage to mark her birthday
3 hours -
Don’t call re-painted old schools brand new infrastructure – Prof Opoku-Agyemang tells gov’t
3 hours -
Sunon Asogli plant will be back on stream in a few weeks – ECG
4 hours -
ECOWAS deploys observers for Dec. 7 election
4 hours -
73 officers commissioned into Ghana Armed Forces
4 hours -
Impending shutdown of three power plants won’t happen – ECG MD
4 hours -
Ghana shouldn’t have experienced any ‘dumsor’ after 2017 – IES Boss
5 hours -
Lamens flouted some food safety laws in re-bagging rice – Former FDA Boss Alhaji Hudu Mogtari
5 hours -
Afcon exit: Our issue is administrative failure and mismanagement, not lack of talent – Saddick Adams
6 hours -
WAPCo to commence major pipeline maintenance and inspection from November 25
6 hours -
CEO of Oro Oil Ghana Limited Maxwell Commey listed among the 100 Most Influential People Awards, 2024
6 hours -
Power crisis: Amandi is off due to maintenance, not debt – ECG Boss
6 hours -
Votes cast for late Akua Donkor to be declared invalid – Electoral Commission
6 hours -
You can’t keep “incompetent” Otto Addo for the long term – Countryman Songo
7 hours