• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Speculation a major contributory factor to cedi depreciation, says John Awuah

3 years ago
in Business, Features, highlights, Home, home-news, latest News, Markets
2 min read
0 0
0
67
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Speculation a major contributory factor to cedi depreciation, says John Awuah

The fast depreciation of the local currency [cedi], the Chief Executive of the Ghana Association of Bankers (GAB), John Awuah, has noted, is largely attributed to the activities of speculators in and outside the country.

Speaking on the depreciation of the cedi in an interview on PM Express, Mr Awuah averred the depreciation of the cedi is not entirely linked to the real demand of dollars by businesses.

The depreciation of the cedi is compounded by some persons and companies buying dollars when they do not immediately need the currency to transact business.

“We are seeing situations where a firm needs about $100,000, but will go out and place multiple requests with four different banks”.

This, he said will definitely push the request to $400,000 from one institution when in actual fact the firm needs only $100,000.

“Now the $400,000 dollar request being push out, will drive the rate downwards and cause the Ghana cedi to depreciate further,” he noted. 

RelatedPosts

AfCFTA Secretary-General Mourns Ghana Helicopter Crash Victims

15% US Tariff on Ghanaian Exports Takes Effect Today

President Mahama Reassigns Defence and Environment Ministerial Portfolios Following Fatal Helicopter Crash That Killed Two Ministers

Mr. Awuah also rejected assertions that bankers are contributing heavily to the deprecation due to certain practices. 

“If a bank is looking for dollars, then it’s mainly for a business transaction. A bank will not go out there to buy dollars,” he insisted.

Mr. Awuah noted that there is the need to target customers that are demanding dollars without immediate need for the currency.

Mr. Awuah  added that banks are not going out to buy dollars and hoard the currency.

“It’s more expensive to hold dollars if as a bank you are not using it for any business transaction”, he said.

The Chief Executive of the Ghana Association of Bankers argued that there’s strict regulatory requirements that makes it very difficult for commercial banks to hold dollar currency when not needed.

Commercial Banks in the country are hopeful measures taken by the Bank of Ghana will stabilise the cedi in the coming weeks.

The Ghana cedi is said to have depreciated against the US dollar by more than 30% since the beginning of the year.

The Bank of Ghana recently announced that it has increased the reserve requirement of commercial banks in the country from 13% to 15% by November this year.

Mr. Awuah added that commercial banks do not benefit from interest rate hike as the data has actually backed their argument.

On loan disbursement, Mr. Awuah noted that “banks are worried when rates go up because it has serious implication on debt servicing and even new loans”

He also rejected assertions that only blue chip companies are getting low rates from the commercial banks in the country.

Mr. Awuah admitted that the hike in policy rate will also result in more businesses pushing for re-pricing of their loans due to the impact of current economic challenge on their business and the ability to service the debts.

Mr. Awuah noted that most businesses are taking the decision to review their stances on loans and not because banks do not want to lend to businesses.

One of the major reasons for the policy rate hike, according to the Bank of Ghana, is to mop up excess liquidity.

However, the commercial banks argue that, they cannot be  accused of “sitting on cash”.

Tags: Ghana Association of Bankers (GAB)John Awuahsays John AwuahSpeculation a major contributory factor to cedi depreciation
No Result
View All Result

Highlights

GOC Suspends King’s Baton Relay in Response to Tragic Helicopter Crash Claiming Eight Lives, Including Two Ministers

Kopa Trophy 2025: Yamal, Doue, and Agyemang Lead Nominees for Best Young Player

Letshego Ghana Delivers Strong and Stable H1 2025 Results, Driven by Solid Business Fundamentals

Ghana Chamber of Mines Pays Tribute to Omane-Boamah, Dr Murtala Mohammed and Six Others in Helicopter Crash

FirstBank Ghana Equips Graduate Trainees 

GRTCC Suspends 20% Transport Fare Hike Following Talks with Transport Ministry

Trending

Features

AfCFTA Secretary-General Mourns Ghana Helicopter Crash Victims

August 7, 2025

AfCFTA Secretary-General Mourns Ghana Helicopter Crash Victims The Secretary-General of the African Continental Free Trade Area (AfCFTA),...

15% US Tariff on Ghanaian Exports Takes Effect Today

August 7, 2025

President Mahama Reassigns Defence and Environment Ministerial Portfolios Following Fatal Helicopter Crash That Killed Two Ministers

August 7, 2025

GOC Suspends King’s Baton Relay in Response to Tragic Helicopter Crash Claiming Eight Lives, Including Two Ministers

August 7, 2025

Kopa Trophy 2025: Yamal, Doue, and Agyemang Lead Nominees for Best Young Player

August 7, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.