₦airaland Forum

5.6% is slow down from 6.1% last year.

samorobo:
You didn't reply me based on what I said....Answer my question..why do all those things have to happen when your economy is supposedly growing at 5.6%...Something is cooking somewhere.. ask kenyatta

Don't console yourself IMF bailout is what Greece went through. It basically mean you're about to default and spread your sickness to global financial system. IMF was formed for exactly that reason. World Bank is for development. IMF is to police bad boys like Ghana who cannot manage their finance - and so they arrive in Accra - and run your country until you sort your issues.

What is IMF bailout?
A bailout is a colloquial term for the provision of financial help to a corporation or country which otherwise would be on the brink of failure or bankruptcy. ... A bailout can, but does not necessarily, avoid an insolvency process.

Just30:
Fact still remains

1) Ghana is not uder IMF confidence building programme.
2) the more we look at Ghana, the more we realise all the IMF programmes Ghana has gone through were unnecessary but because of the nature of the tight politics in Ghana, parties used it as an escape. by playing the IMF

Even with the Cedi depreciation, it still remains a strong currency than the kshs.
Everyone will choose a currency they can predict to store their wealth than one that is fluidly backed by debt.

Debt-refinancing is use by many countries including US and China right now as you speak. US for example don't pay debt with cold hard cash - they mostly borrow more - or refinance or rollover debt.

That leave you with revenues that you collected to be used to pay salaries, recurrent expenditure and spare some for some capital expenditure or development.

samorobo:
My dear you fool yourself alot...Who uses debt to pay debt btw

Let me summarize. IMF bailout are bad news. You should avoid it by managing your macro-economics better. Macro-economics - stable currency, low single digit inflation, low interest,etc

Your electricity sector is worse than kenya - you sign even more lopsided 'take or pay' contracts with power producers - and you're losing 1B dollars in excess capacity annual. You consume 3000MW with whooping 2000MW idle. At least in Kenya we stopped in time - we now have idle 1000mw. Tanzania and Ethiopia are about to face the music - of excess capacity.

Kenya we long turned the corner - we are nailing our challenges one by one - very soon Ghana will be back on their 18th IMF bailout as we become a middle class country.

You country is one huge pendulum swinging wildly - one minute growing at 1% - next 8% - fix that - fix the macro-economics - and maybe mayabe you can be taken seriously.

vaxx2:
Your problem is you are not doing independent thinking? Ghana had has its worst years but she has come out strong and not even a politically motivated economy like kenya can ride it. with Ghana consistent growth, it only takes some years for Ghana to over throw your GDP that has been rebased more than sevem times

I mf don't manage economy, they only give advices since what leads to calling on imf is bad economic policies . You guys even need a better economy management team your excessive budget deficits, un-targeted subsidies, overvalued exchange rates. etc. --.

For example, you country sett up the price of electricity below the cost of producing and distributing it which only serves the interests of those with a lot of electrical appliances — the rich — while starving the system of funds needed to maintain and expand service to a wider share of the public. Likewise, maintaining an overvalued exchange rate which only allows urban consumers to buy imported goods at low prices, while making it impossible for existing and potential exporters to earn the foreign exchange needed to cover the cost of those imports. this is why kenya is borrowing to pay debts . debt to debt .....

for Ghana to be drag into this mess , she will rather borrow from imf ( that seems more prudent) . Your goverment are seriously fooling you.

Imagine it was something like 0.8 cedis to a dollar in 2008 after they got tired with zeros - and changed their currency to match the dollar

Now about 10yrs later - that 0.8 has turned to 5.5 cedis to a dollar.

Annual depreciation of 50%. If you were to make a mistake and keep your bank deposit in CEDIS and needed to convert to dollar - every year you'd lose 50% of it.

mtisTheQubit:
So cedi is another crypro-currency....ok that was a joke....

When you have a well-diversified economy - one or two sector can go down - without affecting the overall health of the economy. That is kenya for you. We can sometimes have tourist going down due to terrorism - or drought making our agricultural production reduce - but rest of the economy hold it up.

Now for you - Oil price come down 10 dollars - and you're gone straight to ICU.

samorobo:
I wouldn't agree more they are they next Greece...O have told him so and he went mad at me...

Don't you think their GDP should be questioned, I mean who grows at 5.6% and experience a dwindling real estate sector, and massive Layoff workers in the formal sector...Did he forget to tell you companies are relocating away from the same country growing at nearly 6%..

Make belief from a country that have been under bailout for 16 times - out of 60 yrs it has been independent . That is roughly bail out every 3 yrs. As soon as you're done with one IMF bailout - you're immediately admitted to another.

Truly the sick man of Africa - no wonder Nigerian laugh when they hear Ghana . The symptoms are usual the same - currency depreciating so badly, debt repayments become impossible, import become expensive and inflation rises, Interest rate shoot through the roof etc - and IMF send an ambulance down Accra to try to resuscitate Ghana once again. Must be the best job to do in Breton hood, Washington Dc.

The problem I think is foundation that Kwame planted in Ghana...Communism.

As regard Kenya - we import about 18-20B - about 1-2B is food - please do some research.

Kenya economic fundamentals have not changed much - for 30yrs we have had underlying inflation around 5% - we have had very stable currency - we have had generally low interest compared to SSA average - we have had robust debt management.

That is why Kenya is Africa largest non-mineral economy - and quite advanced - outside SA in SSA.

vaxx2:
At indepence, only few country can claim tonne richer than Ghana that was when gold value was very high and dollars hasn't become the major reserve currency. not even Nigeria was richer than Ghana. so where comes the historical untrust of the cedis. what causes dollarization is simply trade. Ghana do much more import per head than kenya and Tanzania in combine . you can imagine the pressure on dollar by buisness men...

Ghana import more of machines and cement product. that is hard currency ( Ghana so has a lot of cliniker which is yet to be tapped).most of what you Kenyans are largely food . food is taking a larger chunk of your forex.

I just repeat TZ makes more money on export than you guys and this is largely blame on your overvalued currency.

And the astonishing part of your economy is the attitude of using debt to pay debt . what a mess of an economy? your country is using the money it has borrowed to repay another debt, no new wealth is been created, which is causing your redit rating to fall

This is the reasons investors are demanding a higher interest rate to compensate for their risk since they know they will lose their money.

Kenya dept is costlier to repay ...your economy is in the hands of bad management .

Nigeria spend 70% of budget repaying debts. Typical country budget is 30% salary & pension; 20% recurrent expenditure: 20-30% to repay debt: and remainder 10-20% for development. Now if you already spend 70% to repay debt...what will you pay salaries or pension with?

Tanzania follows with 50%.

Kenya is at comfortable recommended 30%.

samorobo:
And the funny thing is that the debt keeps growing while adding more to the previous one....

Rvp and you have the hits to say Nigeria borrow to pay salaries when you borrow to pay old debt...like this is super insane.

The more I research Ghana the more I am perturbed.

"For the 16th time since the 1960s, Ghana is wrapping up a financial bailout from the International Monetary Fund and stepping away from the lender’s oversight. Now, it’s up to one of Africa’s perennial overspenders to show that it can stick to a budget."

Now you talk about Kenya. Kenya economy has grown to 100B dollars - with on average 6% growth - with all macro-economic very very stable.

Our SGR is firing on all cylinders....check the numbers again. It was built in record 3yrs and in 2nd year of operation it's nearly breaking eve.

Well anyway it rich coming from Ghanian to teach us economic when for 16th Times IMF Has had to Bail out.

Is it because you began with Kwame Nkurmah as communist experiment gone wrong?

You've reached your free article limit.
Try 3 months for

Just30:
Your 60 plus billion dollars debt that hasn't created any expansion in your economy is an indication that all those loans where used to support your currency.
You've built a freight train but there are no production capacity in Kenya so no freight to be carried to the port.
the aim of the port expansion you are carrying out is to encourage import rather than export.

this is seudo economics

The more we debate - the more I realize just how light weight you're in these stuff.

Let stick to facts - not our wishes like Kenya will become GREECE. Facts as of today.

1) Ghana is still under IMF BAIL OUT PROGRAMME.
2)This is GHANA 16th IMF BAIL OUT PROGRAMME. You're only independent in paper.
3) CEDIS is annually deteriorating. Next year you can bet 6 CEDIS to a dollar.
4) Don't talk about debt management when you ran still under IMF BAIL OUT.

In short the more we examine Ghana - the more we realize the rosy story is actually fake.

Just30:
You have not had a serious inflation problem because you have capped inflation and this is a reason why growth is stagnating.

yes Ghana went to IMF through an IMF programme to be able to resolve an investor confidence problem that resulted from our energy crisis.
This is what a transparent economy means and not because Ghana was even close to defaulting because we never came close to defaulting.

Credit agencies are busy giving the Ghana economy a positive outlook.


You are using once your revenue grows as if your revenue is going to grow anytime soon
your economy has not expanded in real terms and value.
This is why purchasing power is contracting and real estate is contracting.

do you want to wait till tourism starts contracting before you realise you have a major problem?
Currently, you have hit a threshold whereby you revenue cannot support debt repayment any longer.

so you are borrowing to pay old debts, in order to be able to do this
you have increased your debt threshold from 50% to 86% or 100%

meaning you are becoming another Greece

CEDIS will not be appreciating anytime soon - it has depreciated what 5000% since 2008. That right there is crazy. Kenya has deprecated by around 70 to 100shs in the same period...about 30%.

CEDIS is on a free-fall - no amount of denial - will help it. It didn't help previously until you got tired of the ZEROS.... and decided to peg it to a dollar...now the zeros are getting added back.

Free -floating currency doesn't mean it depreciate that serious. USD versus British Pound or Euro plays within a very small margin.

Just30:
It is predictable and stable because it is controled the market forces
so everyone can forecast and know when it will appreciate and when it will depreciate.

They only reason why trade surplus hasnt kicked in to the benefit of the Cedis is because
a lot of other legacy issues have to be resolved first

Historical because Cedis has bad history as far exchanging with dollar. So importers, foreign companies and even regular Ghanians do not trust it. Just admit.

You import more of what? In Kenya we import mostly machinery, oil, equipment, cars - not Chinese trinkets - because we manufacture a lot of stuff internally.

TZ and Uganda export very bad quality food - of very little value to us - most Kenyans long abandoned maize, beans, cassava - and such for highly yielding horticultural, fruits, nuts, and dairy.

None of what you're predicting has ever happened to kenya or is about to happen. Turkey was sunk by the US of A. Our debt servicing ratio has always hovered around 30%.

In short Kenya macro-economics have always been STRONG.

vaxx2:
Dollarization in Ghana is historically related to trade and not goverment issues persay . Ghanaian buisness men loves the hard currency due to their import focus buisness. You don't buy goods with cedis , You buy with hard currency . Ghana of 30 million population importing goods worth over 13 billions dollars shows Ghana import than kenya per head. so the more Ghana import, the more the demand on dollars.......You don't talk about economy without checking on the constrain.

Quality is a subjective word , Every individual can claim it, the fact remain , TZ export more foods than you guys despite not having efficient harbour like that of mombasa which is regarded as the best port in east Africa....Uganda as well is not doing bad ....

Your goverment is only window dressing your currency , what you are doing is not much diffrence to what happens to Turkey currency. it is your debt stock that will suffer it and it will in the end back fire . social development goals will failed to materialized , when debt to GDP servicing ratio become very high , Your own economy will crumble for failing to grow above 6 percent which is considered as the moderate growth for developing countries.

I think you confused debt to GDP with servicing ratio ; hardly surprising considering you're functionally illiterate graduate of Nigeria dysfunctional education.

samorobo:
Lol this boy talks as of the internet doesn't work in nigeria...last I check (about four months ago) you are using 60% + to service your debt...

CBK doesn't create USD. They create LOCAL money. USD is created by US's FED . If Central Bank of Ghana had a way - they would have created USD - to keep CEDIS from falling like a thud.

Just30:
You need to learn how central banks work to create money.

Every MOU they sign is a debt.

Where is evidence that we borrow USD to defend Kshs position? Kenya economy is well diversified and sophisticated for it's level. Our source of Forex goes beyond selling oil or aluminium or waiting for remittance from relative abroad like your primitive underdeveloped economy in Accra Ghana.

We have so many source of forex - and that is what make Kshs very strong. For example - UN offices in Nairobi - probably contribute 1B dollars. NGOs HQed in Nairobi and working all over East Africa probably bring another 1B dollars - Oxfam for example Global HQ is now in Nairobi. Tourist bring about 2B dollars. So that 11B trade deficit is alreay nearly half-plugged. Remittance bring in another 3B. Now before factor kenya very strong private sector running the show as down as South Africa, as far east as Congo and north as Sudan...all bring in forex. Before you factor capital flight from the entire region - who see Nairobi very developed financial market - and very open forex market - before you add Nairobi Stock exchange - and before you add all many FDIS - most of them through private equity funds.

In short debt is not source of forex - because we borrow as much as we repay. Zero sum game.

CEDIS problem is simple - forex leave as soon as it get to Ghana because nobody can trust such a fickle currency.

Just30:
if those fundamentals are so strong, why do you keep borrowing to support the pegged currency.


if your currency was freely floating,
a 15 billion import to 5 billion export will lead to massive depreciation and hyperinflation.

This is one of the reasons why no one wants to come to Kenya and open any serious business for production.

Nigeria is worse than Ghana. You're already eye-balled with debt - servicing is taking 70% of your budget - leaving nothing for recurrent expenditure or capital development. That is why your federal road agency was allocated 40M dollars for a whole year.

We are on top of our debt management. We always alternate btw debt leveraging and debt re-financing. But we have never called IMF to bail us or defaulted on our debt obligations.

I am not even sure if Ghana has existed the emergency ward of IMF so be careful - there might be no bed big enough for Nigeria in IMF.

samorobo:
What pics and video are you talking about...is it the ones that reveals the secret midnight meetings your Polictians organise or which one......your middle class bubble burst alone has given us a clue on your fake gdp....don't even talk about debt or borrowing to pay salaries cause you practice the most stupid style...you borrow to pay previous debt...like who does that ....Like Nigerian Polictians can be silly at times but no this stupid....What is even the benefits of collecting tax if your generated revenue cannot even pay your debt...for the past five years now your debt has not dropped but soared, any your leader will tell you they are servicing your debt...like how nigga, howwww..

How can inflation be capped I think economics is not your strongest point. Kenya has not had any serious problem like Ghana. You're just barely out of IMF emergency programme. because you were defaulting on your debt obligation. You are re-basing aggressively as credit agencies and euro-bond interest hammer you.

We spend about 30% of our budget to re-pay debt and we borrow about 30%. It called debt re-financing. Once our revenues grow - we will start debt leveraging - borrowing more than we repay.

It's not even 3yrs when IMF came to bail you out - because despite the so called 8% fake growth rate - your fundamentals are a mess. At least everyone can see Ethiopia growth is real. Yours - outside - Oil & Minning - IS NON-EXISTENT.

Just30:
no one is disputing the fact that Ghana has gone through an economic crisis and is back.

The accusation that your currency is artificially pegged to the dollar whiles your inflation is capped are factual

Those depreciation patterns correspond with your debt increment patterns as you struggle to keep it under control before all the cards come tumbling down.

How can a currency that is annually on a free-fall be called stable and predictable. Don't believe your own propaganda. You have negative feedback loop that is killing the CEDIS.

Just30:
Everyone trust such a currency because they know that it is transparent , stable, and predictable

not one that they will wake up one morning and interest rate has been capped, wake up the next morning and the value of the currency has jumped without any economic explanation.

Now that Ghana has built a positive trade balance, she is seeking to grow that trade balance
by seeking to increase her export values.

This is what will keep the cedis stable for a very long time.
Now Ghanaian exporters can sell their goods internationally at a cheaper rate.

You can fake something for 30yrs. Kenya has never been bankrupt. About 10yrs you were so bankrupt - you had all debts - forgiven by Paris Club - and now you're heading straight into another bankruptcy.

And we cannot fake pictures and videos of Kenya.

samorobo:
Lol I am...vaxx will finish him..

Finally every one is beginning to see what I have been saying .. Every thing in that zoo Kenya is fvcking fake and cooked..All stat is a facade influenced by their stupid policticians to cover things on ground..They are just like Rwanda if not worse..Rvp is quick to point hand and shout cooked.... when none of the countries on this thread can attempt the kind of fraud their politicians perpetuate....Wonder no more why they are more corrupt than nigerian... Wonder no more why their budget doen't reflect on their infastructures...I didn't know the KSHS was this valueless....
Fvck who borrows to support your currency...that Isa disaster.

Now you're about to admit the problem. The problem is historical - the way I see - it the lack of confidence in CEDIS - and you gov is doing such a bad job.

Kenya strong Kshs against deteriorating regional currencies (UG & TZ) - is making our manufacturer goods expensive (although when it come to quality -they cannot hack it - Kenya goods are still seen as of better quality) - but we export lot more services than even manufactured goods - so we are fine - and still run East Africa trade.

But because we still import a lot of capital goods from likes of India, Saudi Arabia(Oil), China, Japan (cars, machinery, equipment) - and because we value currency STABILITY - our central bank does a clean job defending Kshs in an open market.

vaxx2:
Ghana is a dollarised country and the issue is more historical rather than fundamentals . stopping more import shows that we want to be self sufficient in area we think we are better off and we can can perform better....

1) It's not structural because you have positive Trade balance. You export more than your import. You have trade surplus. You also have 8B dollars from remittances. So on face value - you're doing well - but CEDIS isn't.

2) I think the problem is more confidence thing - you demonetization failed because Ghanian have really bad memories of Cedis during hyper-inflation - so nobody trust Ghanian Cedis.

3) Kenya has been free-floating kshs since 93, we have no forex controls and CBK don't borrow any money. They buy and sell forexs like any market player.

4) The strength of Kshs is not a mystery - it's because Kenya esp Nairobi attract a lot of forex - because we are financial capital - we have many NGOS, UN and MNCS bring lots of forex - we have tourist bring forex - we have lot of capital flight from region (Tanzania, Somali, etc ) ending in Nairobi. Heck we have people as far as UK, US, Nigeria coming to buy kenya real estates.

5) We are now mostly debt re-financing. We borrow 6B dollars - about 3B dollars externally - and 3B dollar internally. And we repay 6B dollars - about 3B dollars internally and 3b dollars externally. So forex from debt is NOT NOT responsible for strength of Kshs - we pay back as much dollars as we borrow.

Just30:
Ghana currency depreciation is a structure thing
whiles capital flight is on the lower side,
demand for dollars for import still remain high

that is why Ghana is embarking on an import substitution program


The only reason why the Kenyan case hasnt turned into another Zimbabwe is that your central bank is borrowing both domestically and foreign
hugely to support the currency.

with the knowledge i have on fiat currencies, this trend in unsustainable
it leads to more misery

Facts are stubborn. Nearly 1/3 of money in Ghana is banked in dollars. It doesn't by who - but foreign-currency denominated account are huge. I wish you an inject some confidence to CEDIS - otherwise it's on a serious free-fall - and before soon you'll be in yet another DEMONETIZATION

This time peg your CEDIS in Kshs - and let Central Bank of Kenya help manage your CEDIS.

Just30:
you you just posted, you dont even understand

In Ghana, not one can own a dollar account unless they earn in dollars
the only reason domestic deposit did not grow much was that Ghana is in a banking crisis at the moment.

An engineered banking crisis aiming to burst a bubble in a controlled manner before it leads to a bigger crisis.

Central Bank of kenya do not have any borrowed money. Treasury is the one that borrows and use the money. Central bank of kenya buys and sells forex like any market player - and they come to market to buy or sell - so they can keep Kshs stable.Commercial banks are also key forex players. When fundamentals are against Kshs - no amount of CBK defending Kshs can help - so for instance Kshs once depreciated to 107shs to a dollar.

Just30:
ll
This can only mean, their central bank is using huge part of the borrowed money to support their currency in a pegging system.

Kshs has been free floating for as long as I can remember (I think 1993). IMF last year disagreed and classified it managed because they cannot figure out just how strong and defiant Kshs has been. CBK intervene as market player. We don't have Nigeria kind of 3 exchange rates. We don't have black market for dollars. You can buy and sell as many dollars as you want anytime. And you can take them out of Kenya anyday. But nobody does that because our fundamentals are so strong.

Just30:


your central bank will not even dream of freely floating your currency
because, in minute, it will become useless like Zimbabwe

how do you think they will do it?
when export is just 5 billion dollars?

You are just piling on debt you cannot pay
encourage by you politicians to support your national currency.
Just to cover for the weak fundamentals in your economy

This will end in a new Zimbabwe.

You know the stats you buddy are quoting are very shocking. Inflation of 15% down to 7.5% for example is only possible in a country that is in economic mess. Not a country that is growing at such rate. Kenya inflation rate has always been under 5%. For all the time I can recall Kenya inflation has always been single digit. Nowadays it as low as 4%.

The accusation that Kshs is artificially pegged to dollar has no basis - Kshs for last 30yrs has been 63- 78 -85 -100 to the dollar. We cannot possibly sustain to keep Kshs for that long without the fundamentals. In our 50yrs of independence - we have only had one serious hyper-inflation last 2-3yrs - we had Kshs drop from 20shs to 60shs in 1992/1993 - after our central bank was looted/donor funding withdrawn - in the run up to the first real multiparty election.

Just30:
This can only mean, their central bank is using huge part of the borrowed money to support their currency in a pegging system.

Capping was populist move by parliament to reign on the banks who had refused to be self-regualte - although it was not as bad as I have seen in Ghana and Nigeria. We are a modern democracy - and Judiciary said no - that is Central Bank job. As you speak interest capping is gone. It was only there for 3yrs (2016-2019).

When it come to purchasing power - I don't what exactly that mean - you see we have huge trade deficit - meaning we import more than we export - so a strong Shilling works for us - purchasing power wise - and of course it also helps when we have to repay debts.

Now Ghana you have positive trade deficit - so I don't even know why your president think you're importing more than you should - and but what is hammering you is not a WEAK CEDIS - it's a UNSTABLE RAPIDLY DETERIORATING CEDIS. Nobody can trust such a currency - leading to capital flight.

vaxx2:
The capping of your interest shows your goverment can politically influenced anything in your country. Your national statistics are simply lying about how rosy currency is ?. If your purchasing power is dwindling , how can you say you have a better currency...

Why do you guys lie when the data is our there. Most Ghanians are now keep their money in foreign currency. Foreign investors repartraite their money as soon as possible leading to capital flight. This is loop that feed itself and CEDIS continues to fall.

Evidence 1:Bank of Ghana captured this in the Banking Sector Report for September 2019 it published.

The report shows that the domestic currency component of deposits recorded a slower growth of 9.1 percent to GH¢54.8 billion in August 2019, 20 percentage points lower than the previous year’s growth; whereas, foreign currency deposits grew by 21.2 percent to record GH¢21.2 billion during the review period compared to a growth of 18.6 percent in the previous year.

Just30:
cedi was never pegged to the dollar

No Ghanaian prefer using the dollar
dollar is not even a legal tender here.

this desperation of yours need to be address.

since you dont know how MOU in investment works
Let me help teach you

this is the economics of foreign exchange

https://www.youtube.com/watch?v=ig_EO805rpA

Nano think it's structural and stuff like 1D1F will help. I disagree. It's not structural - otherwise kenya with Africa highest trade deficit (11B dollars) would be crying too. It's failure of of Ghana Central Banker to manage & instill confidence on the CEDIS - and stamp on dollarization of the economy. Once people lose faith in a currency - it's a free-fall - because individuals will trade or save in USD - while foreign investors will convert CEDIS to USD ASAP and send it back home to preserve value.

"We live in a country where we are overly dependent on the importation of things for our daily sustenance. Things we can produce, we continue to export them.And at the same time, we don’t generate enough export,” he said and stressed the need for public discourse to focus on addressing how the country could reduce import."

Nope. Free floating currency when economic fundamentals are solid don't go on free fall - they can depreciate or appreciate in low margins. Your macro-economics are a mess - inflation, interest rates, and the 'fake' economic growth doesn't seem to help at all - the CEDIS.

Kenya is essentially free-floating currency (IMF last year disagreed and say it was managed) - but CBK does market intervention once in and a while - and it's not like our CBK manufacture USD. And there are no forex controls in Kenya.

Just30:
freely floating currencies turn to depreciate on high speculation

that is the nature of fiat currencies

vaxx2:
I said your currency is at worst hit . currency massaged artificially always end up in shambles at the end . go CHECK what happens to Turkey currency, which kenya is practically imitating

Cedis is in free flow , it is not massaged . your currency is not a true reflection of its value. IMF already indicate that to you.....and You guys don't even have enough extra cash to power it. Your import is far bigger than your export. The kind of currency massaging you guys practice will only increased your debt and widen your deficit.

Already you know what happen when your goverment artificially cap the interest rate . you see how your micro economy suffers particularly your private sector .


Your currency is not in anyway better than cedis which is a true reflection of its value . I even argue cedi is far more valuable than yiur currency cus yours is politically influences like your interest rate. kenya your economy suck ... I am not insulting ....

You cannot sustain currency artificially for that long - if CBK was cooking our Kshs-USD it would have began a free fall like Ghanian one which you tried to peg 1:1 to dollar in 2008 after hyperinflation of 80s and 90s. Now the Cedis is heading 5.5 - by next year 6 - and the free-fall continues.

Our CBK only intervene to ensure stability. Now I don't even comprehend what he'll going on in your economy.. because with currency free fall like that..no foreign investor can keep the cedis..they convert to the dollar and send it home..huge capital flight ASAP. Ghanaians themselves are preferring to open USD account and keep their money in foreign currency.

You seem you export lots of minerals and have huge remittance but your macro economic are just shitty. Youre barely doing 4.5 months of forex reserve.Currency on free-fall. Inflation at double digit. Interest rates worst than Nigeria.

Kenya commercial interest rate capping was enacted parliament against executive wishes - and our judiciary ruled it unconstitutional for interfering with central bank mandate - and that now is history. I don't expect interest rate to rise from 13% by much - the max for risk borrowers will be 16%.

Yeap nobody wants to hold onto a currency not any different from Zim dollars https://www.google.com/amp/s/www.pulse.com.gh/bi/finance/bank-of-ghana-report-predicts-more-cedi-depreciation-as-depositors-switch-to-open/egf7v71.amp

vaxx2:
You should be more worried about kenya shilling which has lost over 50 percent of its purchasing power and yet yet the exchange rate has declined by only 20 report , the report.That implies yours currency is overvalued by 30 percent. this is no two way about it. your national statistics is highly doctored .....And You here claiming Nigeria and Ghana massage numbers when it is glaring clear your economy is in shambles....

You want compare shilling that has been operating on a massage therapy to a free float currency? the Ghana cedis...

But let me educate you, The depreciation of cedi is structural and not necessarily due to any form of mismanagement of the economy or micro economy. . Ghana inflation is going down 7.6 percent, producer price index is going down, economy is growing at 7 percent(one of the highest in the world) Therefore it is too ignorant to link cedis depreciation to weak economy fundamentals because all economy index proves Ghana economy is healthy, so it's structural.

in a nut shell, the main depreciation or appreciation of the cedi is fundamentally determined by the supply and demand for US dollars. in Ghana. the supply of USD is mainly from foreign reserves which is dependent on the amount of foreign exchange Ghana receive from exports and foreign aid. With Ghana now classified as a lower middle-income country, the foreign aid component would continuously dwindle

As I type now. Ghana foreing reserve is over 9.2 billion dollars amd that is enough to take thru this month . how much do kenya has up there

My friend your currency is so useless most Ghanian prefer to keep the dollar.I mean something that loses value in such scale is very shocking.Even the Naira is not that bad.And this is historical problems you cannot seem to solve.Initially cedis had become so useless you started pegging to the dollar..it hasn't helped at all because now 5 cedis is equal to a dollar.Ksh is Africa strongest currency for many years now.It depreciated to the dollar in a decade from 78shs to now 100shs.We don't export lots of minerals and yet our forex reserve are 9b dollars.. more than enough to cover the min of 4 months of import.Something is wrong with Ghana macro economic.. interest rate, inflation,currency.I wonder how an investor outside natural resources would risk his money in a CEDIS not any different from Zim dollar.If you had 10m cedis five years ago and you want to reprariate back to your country, the dollar equivalent will be 2m.You would have lost 8m.Which foreign investors will keep the cedis? Stability of currency is important