Importers could hedge against the cedi-depreciation – Currency Expert

A major challenge currently confronting importers is how to get more cedis to buy dollars for their business.

This is primarily due to the rising cost of imports as a result of the continuous fall in value of the cedi against the dollar.

The Bank of Ghana pegs the cedi's rate of depreciation against the dollar at a little over 15 percent with some analysts predicting almost 25 percent by the end of the year.

Currently trading around 1 cedi 95 pesewas, some analysts are predicting the exchange rate will hit a little over 2 cedis by the end of the year.

But a Currency Expert with ABSA Capital, Ridle Markus explains to JOY BUSINESS, hedging the cedi against the dollar could be the best option for businesses to manage exchange-rate losses.

“On the import side you would have to look at hedging your imported right as soon as possible. If there is any relief in that insurance right , I will be hedging to mitigate that risk because its likely the cedi would continue to depreciate” he noted.

Story by Emmanuel Agyei / George Wiafe - Joy Business