Coronavirus - Virus: Ghana cedi make gains against US Dollar sake of COVID-19 Disease?

  • Favour Nunoo
  • BBC News Pidgin, Ghana
Pesin wey wia facial mask and pesin wey dey count Ghana Cedi and US Dollars
Wetin we call dis foto,

As at today 2 March, 2020 de Ghana Cedi dey exchange 5.32 to one US dollar.

Debate dey go on for Ghana say coronavirus dey make de cedi appreciate against de US Dollar.

One of those wey support dis claim be National Democratic Congress, Communications Director, Sammy Gyamfi who argue say coronavirus help de cedi appreciate sake trade volumes between Ghana den China reduce.

Therefore importers shun dey go buy goods from China sake of de deadly virus. De result be say menerz dey dema dollars for de country inside, reducing de pressure on de cedi.

As at today 2 March, 2020 de Ghana Cedi dey exchange 5.32 to one US dollar.

In fact, as of December 2019 de Cedi dey exchange for 5. 7 while by January 2020 de cedi to dollar exchange for 5.48 and by mid February 2020 wen de deaths from coronavirus boku, de Cedi exchange for 5.41 to one US dollar.

BBC Pidgin talk to some Ghanaians for Accra who feel say coronavirus help de cedi.

"Right now with de coronavirus Ghana no go buy goods from China, so dis go save plenty money for de economy inside which go make de cedi appreciate." Ellis talk BBC Pidgin.

Although some policy analysts also agree plus dis position say coronavirus get positive impact on Ghana cedi, but Economist for University of Ghana, Professor Godfred Bokpin dey disagree.

"De evidence no dey support de claim say de appreciation of de cedi be solely due to coronavirus" Professor Bopkin talk BBC Pidgin.

"Ghana exposure in terms of trade volumes to China be high but other African countries like Nigeria, South Africa, Zambia, the Ghana no be unique."

From that perspective you no fit attribute de appreciation of de cedi to de Ghana cedi.

According to Professor Bokpin, "if you check de data, de appreciation of de Ghana cedi start before de announcement of coronavirus. De cedi recovery start before dem declare an global health issue."

"What dey happen be Bank of Ghana en strategic intervention. Central Bank sheda build dema reserves so say of Ghana sheda shore up dema reserves in preparation for 2020" he add.

Wetin we call dis foto,

As at March 2, 2020 de Ghana Cedi dey exchange 5,32 to one US dollar.

Africa-China Trade volumes

Data from World Integrated Trade Solutions dey show de 2018 trade volumes of four African countries.

South Africa imports from China worth US$ 17,087 million.

Nigeria imports from China worth US$ 8,349 million.

Ghana imports from China worth US$ 2,273 million.

Zambia imports from China worth US$ 1,291 million.

What be key about de above data be say although South Africa den Nigeria get higher trade volumes plus China compared to Ghana.

Dema currency since de inception of coronavirus depreciate except Ghana who see appreciation of de currency from 5.7 per dollar around December last year to 5.32 around February ending.