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The International Monetary Fund has mentioned that the increased weakening of the Ghanaian Cedi as compared to the U.S. dollar will deteriorate the effects of the Covid-19 pandemic.
The cedi has continuously depreciated compared to the U.S. dollar since late February,2020 by -2.46%, year to date, and -7.34% year-on-year.
Furthermore, the IMF said, “For the ongoing COVID crisis, the dominance of the US dollar implies that the observed weakening of emerging and developing countries’ currencies is unlikely to provide material boost to their economies in the short term.”
“Effectively, the response of goods exports will be muted while some sectors that would normally respond more to exchange rates—like tourism—are likely to be impaired by COVID-related containment measures and consumer behavior changes,” The Fund said.
