In today’s globalized economy, it’s important for any business owner, investor, or even just a casual traveler to know about foreign currency exchange rates. Ghana is not the only one.
Many people are very interested in the dollar price in Ghana, or the value of the Ghanaian Cedi (GHS) against the US Dollar (USD). This piece goes into detail about the current dollar price in Ghana, what factors affect it, and where it is safe to change money.
Dollar Price In Ghana & Why It is So
As of June 2023, 1 USD is worth about 11.23 GHS. This shows that the value of the dollar has been steadily going up against the cedi over the past few years. This trend has been caused by a complicated mix of factors, including inflation rates, interest rates, public debt, economic stability, and political factors in both the US and Ghana.
1. Inflation rate
The exchange rate is largely based on the inflation rate, which is the average rate of price rise for goods and services in a country. When inflation is high, each unit of the local currency can buy fewer goods and services. This makes the local currency less valuable. In Ghana, inflation rates have been higher than in the US, which has caused the cedi to lose value.
2. Rates of interest
Rates of interest also play a big part. When Ghana’s Central Bank raises interest rates, it often brings in foreign investors who want to make more money on their investments. This increases demand for the cedi, which makes it go up in value. But if the U.S. Federal Reserve also raises interest rates, this can make the dollar stronger, which can cancel out any rise in the value of the cedi.
3. Stability in the economy
Stability in the economy is also a key issue. When foreign investors see less danger in a country with a stable economy, they tend to invest there. This makes the country’s currency go up. Even though Ghana’s economy is growing, problems like state debt are putting pressure on the cedi.
Places To Make Dollar Transactions
There are both offline and online places in Ghana where you can trade dollars for cedis (or vice versa) that you can trust. Banks like Standard Chartered, Barclays Bank, and Ghana Commercial Bank offer competitive rates, but you may need an account with them.
People also like to use forex companies. They are common in cities and towns, and even though their prices can be a little bit higher, they are more convenient.
For digital choices, there are a number of online platforms that make transactions easy. Users can check live rates and make transactions with apps like ExpressPay and mobile banking tools from their local banks. Most of the time, the rates on these sites are competitive, but there may be transaction fees.
Table: Current exchange rates on different platforms (as of June 2023)
|Platform||Exchange Rate (GHS per USD)|
|Ghana Commercial Bank||11.68|
|Average Forex Bureau||11.26|