Business News of 2014-01-28

British pound hits GHC 4 in forex bureaus

A currency analyst has cautioned that Ghana’s economy could face dire consequences if immediate measures are not put in place to arrest the fast depreciating cedi against the British pound.
28 days into the year, the cedi has already depreciated against the British Pound by about 7.8percent and exchanging at GHC 4.10 pesewas in Forex bureaus.
It depreciated about 17 percent last year.
The Ghana Cedi last year proved to be one of the worst performing currencies on the African continent.
Head of Research at Gold Coast Securities, Samuel Ampah said this can dampen confidence and have some effects on inflation.
He explained that “its implication is dire. It certainly will have inflation go up again because we are an inflation targeted economy. Also business confidence is going to be affected- people will be in a rush to buy and save looking at the high rate of depreciation.”
Mr. Ampah described the situation as “unpleasant” adding that “it was expected that at the beginning of the year, there will be a level of calmness, but that is not the case.”