Cedi sells at GH¢12.90 to $1 on forex market, GH¢10.60 on interbank market.

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The Ghana Cedi, has seen a significant difference in its exchange rate on the forex market and the interbank market. On the forex market, the cedi is currently selling at GH¢12.90 to $1, while on the interbank market, it is selling at GH¢10.60 to $1.

The difference in exchange rates between the two markets is significant, with a difference of GH¢2.30 between the two rates. This has raised concerns among economists and experts about the state of the Ghanaian economy.

The forex market, also known as the foreign exchange market, is a decentralized market where currencies are traded. It is where individuals, institutions, and businesses buy and sell currencies. The interbank market, on the other hand, is a market where banks buy and sell currencies among themselves.

The difference in exchange rates between the two markets is a reflection of the supply and demand of the cedi. The forex market is driven by market forces, while the interbank market is driven by the Central Bank of Ghana (CBG) and other commercial banks.

The CBG has been making efforts to stabilize the cedi by increasing its foreign exchange reserves, but this has not been enough to bridge the gap between the two markets. Experts suggest that the government should take steps to improve the country’s economic fundamentals, such as reducing the budget deficit, to help stabilize the cedi.

The high exchange rate on the forex market is likely to have a negative impact on the country’s economy, as it will make imports more expensive and exports less competitive. This will, in turn, increase inflation and put pressure on the country’s balance of trade.

The significant difference in exchange rates between the forex market and the interbank market is a cause for concern. It is a reflection of the supply and demand of the cedi and the state of the Ghanaian economy. It is important for the government and the CBG to take steps to improve economic fundamentals and stabilize the cedi, to mitigate the negative impact on the country’s economy.

 

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