Businesses and individuals holding on to foreign currencies, particularly the United States dollar, must desist from the practice to ensure availability of the currency on the market to facilitate business transactions. The Founder of The Royal Bank (TRB), Alhaji Adamu Iddrisu, who made the call, said hoarding the dollar created unnecessary shortage which prevented those in real need of the currency to engage in foreign transactions from doing so. Besides the fact that the situation contributed to supply deficit, it also further weakened the cedi against the dollar as real demand exceeded supply. Speaking at the launch of The Royal Bank Foundation in Accra on August 7, he said the practice contributed to the fall of the cedi, explaining that “because of the shortages those who need the US?dollar are forced to use more cedis to purchase that currency and that brings the problem.” Since January to date, the cedi has depreciated by almost 30 per cent against the US dollar, which is the major foreign exchange currency used in international trade and finance.
Posted on: Wed, 13 Aug 2014 07:25:15 +0000
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