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Economic challenges due to high exchange rate – ISSER
The Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana has attributed rising labour agitations, high business costs, and the collapse of some businesses to the high foreign exchange rates and inflation.
This finding is sourced from the Institute’s assessment of the recent mid-year budget review presented by the Minister of Finance, Dr. Mohammed Amin Adam.
According to the report, in the first half of 2024, the cedi depreciated by 18.6% against the US Dollar, 17.9% against the Pound Sterling, and 16.0% against the Euro.
In 2023, the cedi depreciated by 27.8% against the US Dollar, 31.9% against the Pound Sterling, and 30.3% against the Euro.
In 2022, the cedi depreciated by 30.0% against the US Dollar, 21.2% against the Pound Sterling, and 25.3% against the Euro.
“This suggests some stabilization of the exchange rate over the past three years,” the report stated.
The report added that, aside from January, the cedi was generally more volatile against major foreign currencies (Dollar, Euro, and Pound) in the first half of 2024 compared to the same period last year.
Despite the increased volatility in 2024, the cumulative depreciation rates were relatively lower. The report urged the government to take further steps to reduce the rate of cedi depreciation against major trading currencies and to increase exports to lessen the demand for foreign exchange.
“It also recommended that the central bank enforce forex regulations more strictly and increase its presence in the exchange rate market.
With respect to inflation, the Institute referenced June 2024 inflation, which decreased to 22.8 per cent, adding that it represented a significant drop from the peak of 54.6 per cent in December 2022.
The Institute added: “However, compared to the inflation of 12.6 per cent in December 2021, this figure is still high,”
ISSER urged the government to examine the commodities driving inflation and commit to addressing the underlying factors.
“For instance, improving the road network in areas designated as the food basket of Ghana and reducing foreign exchange rates can help lower transportation costs and fuel costs, consequently reducing food and non-food inflation to single digits”, the report noted.
Source: Citinewsroom.com
Government has inaugurated a Technical Committee to drive the implementation of the Accra Marine Drive Tourism Investment Project, a key initiative aimed at transforming the capital’s waterfront into a world-class tourism and commercial hub.
Minister for Tourism, Culture and Creative Arts, Abla Dzifa Gomashie, described the move as a critical step to accelerate progress, stressing the need for efficiency, collaboration, and accountability.
The Committee, chaired by Deputy Minister Yussif Issaka Jajah, will coordinate stakeholders, address bottlenecks, and ensure timely delivery of the project.
The initiative is expected to boost tourism, create jobs, and stimulate economic growth, reinforcing Ghana’s commitment to sustainable development.
The Ghana National Fire Service (GNFS) has stepped up its fire safety education efforts in Suhum Municipality and Abetifi Odwenease as part of ongoing campaigns to prevent fire outbreaks and improve emergency readiness.
In Suhum, fire officers engaged traders and customers, educating them on handling LPG leakages, proper use of fire extinguishers, and general shop safety practices. Meanwhile, the Kwahu East Command extended outreach in Abetifi Odwenease, visiting homes, drinking spots, construction sites, and stores to promote safe handling of flammable materials, proper electrical usage, and correct gas cylinder placement.
Practical demonstrations on fire extinguisher use were conducted, and residents were encouraged to adopt good housekeeping habits and proactive safety measures to reduce fire risks and protect lives and property.
