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General News on Friday, March 29, 2019
Source: Starrfmonline.com
2019-03-29
The cedi has recently reached a historic low by recording a SGH rate5.86 to $ 1
The depreciation of Ghana's local currency, the cedi, can be attributed in part to churches operating in Ghana whose head office is located outside the country, said a senior technical adviser in economics to the vice president.
Dr. Samuel Kwadwo Frimpong observed that most of these foreign churches converted their offerings and tithes into dollars before transferring them to forex accounts.
According to him, a careful badysis of the Cedi indicates that between Monday and Tuesday, the currency depreciates slightly, which ties it marginally to the churches that convert the local currency into dollars.
"Many churches in Ghana do not have their headquarters here. Thus, their collections, their offerings and their tithes are converted into dollars and transferred to forex accounts.
"Recently, we studied and noticed that on Mondays and Tuesdays, the rate of conversion of the Cedi into dollars increases. As a Christian and economist, I think it's also a contributing factor, "said Dr. Frimpong to Odame Agyare – an independent reporter working for a preview show -" On Point Show ".
He was, however, optimistic measures being deployed to strengthen the Cedi against the dollar will yield positive results.
Ghana's local currency has recently reached a historic low, recording a rate of 5.86 GHS per dollar.
However, the local currency, described by Bloomberg as the weakest currency in Africa, has begun to recover after the sale of the $ 3 billion dollar bond by the government.
Ghana's Finance Minister Ken Ofori-Atta told the parliament on Thursday that the government would establish a bipartite committee to investigate the recent depreciation of the Cedi and propose measures to curb it.
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