VenturesNow

Ghana’s economy hits new low as currency falls by 72% against USD

Published

2 years ago

October 11, 2022

The Ghanaian currency, the cedi has hit a new low 72% loss of its value against the US dollar since the start of the year.

Ghana’s economy has witnessed setbacks after the Covid-19 pandemic as the West African country’s currency, Cedi, is currently exchanged at 10.62 for 1 dollar.

Its rapid economic growth was halted by the COVID-19 pandemic, the March 2020 lockdown, and a sharp decline in commodity exports.

The gold-rich West African country is battling debt, 20-year-high inflation, a weak currency, and rising inequality. In August 2022, inflation increased to 33.9% from 9.7% the previous year.

A report by Bloomberg IN August, says the fall in the currency is due to demand forex as it overtook supplies during a period when high debts and low investor confidence have made it impossible for Ghana to access the international capital market for borrowing.

The country had recently reached out to the International Monetary Fund (IMF) for its intervention as it struggle to settle its finances.

Its public debt as of June 2022 was $54.4 billion (78.3% of GDP) from US$32.3 billion (l55.5% of GDP) in 2017, according to central bank and finance ministry data. Of this, external debt was US$28.1 billion (40.5% of GDP), while domestic debt issued in cedis was US$26.3 billion (37.8% of GDP).

VenturesNow

Ezz al-Arab appointed as Egypt’s CIB chairman

Published

3 hours ago

September 16, 2024

Ifeoluwa Dada

Commercial International Bank (CIB), Egypt’s largest private bank, announced on Monday that long-time chairman and previous CEO Hisham Ezz al-Arab will become CEO.

Neveen Sabbour, a board member, will take over as chairman, according to a statement. Hussein Abaza, the outgoing CEO, will be replaced by Ezz al-Arab, who will hold the role for three years.

In Egypt, the market share held by traditional banks is expected to reach US$35.84 billion. As more clients choose online and mobile banking options, Egypt’s banking industry is seeing an increase in digital banking services.

The new appointments are part of “to lead the bank’s multifaceted business transformation and continue its programme to support recognised potential future leaders,” the announcement stated.

Ezz al-Arab, chairman and managing director since 2002, resigned in October 2020 due to “compliance concerns” from the national bank.

In August 2022, a year before his tenure expired, central bank governor Tarek Amer resigned due to a currency crisis. Ezz al-Arab was requested to rejoin as chairman in December.

VenturesNow

Nigerian inflation falls again, drops to 32.15% in August

Published

3 hours ago

September 16, 2024

Ifeoluwa Dada

Nigeria’s August inflation rate declined for a second month to 32.15% from 33.40% in July, the statistics office reported on Monday. This comes after the month of July saw the first decrease in consumer inflation in Africa’s largest country in almost a year.

Analysts predict August’s slowdown may be short-lived after two gas price increases this month enraged citizens facing the worst cost-of-living crisis in a generation.

The removal of a decades-old gasoline subsidy, devaluation of the naira currency, and increase in energy costs by President Bola Tinubu have raised prices.

Reforms attempt to boost economic growth and public finances.

The central bank’s next interest rate decision next week may be influenced by inflation figures. The apex bank has hiked rates four times this year to curb inflation, and economists say July’s hike may be the last.

Further petrol price increases and northern flooding that swept away crops could raise food prices.

“On the whole, disinflation should continue with the headline rate falling below 30% by year-end, but upside risks remain,” Capital Economics Africa analyst David Omojomolo wrote.

He claimed rising petrol prices might “slow the pace of the disinflation process” and that the central bank would not drop rates until early next year.

Food inflation dropped from 39.53% to 37.52% in August. It remained the greatest inflation driver in August.