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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.

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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.

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“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.

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“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

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National Service Authority goes cashless

The National Service Authority (NSA) has announced a mandatory transition to a cashless payment system.

This initiative aligns with the government’s drive to modernize revenue collection.

In a statement, NSA noted that effective immediately, all user agencies and stakeholders are directed to make all payments,

including the 20% and 10% administrative service charges, through the GHANA.GOV platform.

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This shift to digital payments offers greater transparency, convenience and accessibility for those working with the NSA.

By Edem Mensah-Tsotorme

Read the full statement below

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Greater Accra Regional Minister calls on traders to operate within designated spaces to ease congestion

The Greater Accra Regional Minister, Linda Obenewaa Akweley Ocloo, has called on traders in the city to operate within designated spaces to ease congestion and maintain cleanliness in market centres. 

Speaking with traders at the Kaneshie Market on February 4, 2025, during a tour of selected market centres to assess sanitation challenges, reinforce government commitment to address indiscriminate refuse disposal, and improve market conditions, the minister called for collaboration between traders and local authorities to address sanitation and maintain order.

She assured the new government’s commitment to addressing urban challenges and improving market conditions in Accra as part of its broader agenda for a cleaner city.

“We are here to engage you in a conversation about our mission to improve cleanliness in Greater Accra. We are taking into account the conditions of the roads, your problems, and your suggestions. Most walkways have been taken over by traders instead of serving their original purpose, which leads to traffic congestion. We want to understand your challenges so that we can find the best way to assist you,” the Minister stated.

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The Minister who was accompanied by officials from the Greater Accra Regional Coordinating Council ( GARCC) led by the Chief Director of the GARCC, Mrs. Lilian Baeka, some staff from the Accra Metropolitan Assembly(AMA) and other sister assemblies in the Region used the opportunity to enquire about the state of waste disposal within the market and the efficiency of refuse collection by the assemblies.

“Does it take long for the refuse to be collected after it is gathered? These are some of the issues we want to address,” she added, inviting traders to share their thoughts.

The President of the Greater Accra Markets Association, Mrs. Mercy Naa Afrowa Needjan who welcomed the minister, expressed gratitude for the visit and assured traders commitment to rally support behind her as a woman in leadership. 

”In the market, we face numerous challenges we wish to discuss. There are various groups of traders with some selling at the top, others beneath, while some can be relocated, others should be removed. However, we must follow due process to ensure that people’s livelihoods are not affected. She cannot do it alone, and we are ready to support her efforts,” she stated.

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She noted that efforts to regulate trading activities, especially on the Kaneshie overhead footbridge, had proven difficult despite continuous engagements with the police.

Madam Mercy Naa Afrowa Needjan identified street trading as a major concern, explaining that it had significantly affected business inside the main markets. 

“Our major problem is those selling outside. Because of them, the market is now dry. Almost everyone has moved onto the streets. They are our brothers and sisters, and we want them inside the market. There are a lot of vacant spaces they can occupy,” she said.

On sanitation, she remarked that significant progress had been made, stressing that previously, the Kaneshie market was associated with rubbish, but the story had changed for good.

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