Did the cedi rate hit 17 Ghana Cedis under the NPP? Yes and No
NPP National Communications Team member Mohammed Awal argued on Joy Prime that the cedi never hit GHc 17 to the dollar under the NPP. Forex data shows it depends on the rate source — interbank versus retail forex bureau quotes diverged sharply.
The claim
Mohammed Awal, a member of the NPP National Communications Team was on Joy Prime TV's morning show where he argued that the US Dollar never hit 17 cedis under the NPP government. He said this in response to the host's comment that the dollar reached 17 cedis during the Nana Akuffo Addo administration.
What we found
To determine whether the dollar really got to 17 cedis under the NPP government, it is important to know the source of data. Awal Mohammed advanced his claim using Bank of Ghana's Interbank Dollar Rate and Google's Mid-Market Rate. These rates are typically used as a benchmark for currency trading between banks and large financial institutions.
Going by the interbank rate, Awal Mohammed's claim that the Dollar never hit 17 cedis is true. The highest dollar rate, as of November 6, 2024 according to the Bank of Ghana's interbank rate is 16.4118.
On the other hand, the host's claim that the dollar hit 17 cedis is also true. While the Bank of Ghana gives daily updates for interbank Dollar rates, they do not determine how much the dollar is sold in the retail and black market. These prices are usually higher. For example, while the interbank rate as of October 4, 2024 was 15.7821 and 15.7979, online card payments crossed 17 cedis as reported by Modern Ghana.
As of November 4, 2024, the cedi was selling at 17.15 cedis in many Forex Bureaus and in the black market as reported by GhanaWeb. MyJoyOnline also reported that the cedi was being sold at 17 cedis in the retail market: "The local unit gained 0.2% to sell at GH¢16.33 to one American greenback on the interbank market. It is, however, going for GH¢17.00 to the dollar on the retail market."
Verdict
The answer depends on which exchange rate source you reference. At the Bank of Ghana interbank level, the dollar never officially hit 17 cedis. But in the retail forex bureau and black market, the dollar did exceed 17 cedis. We rate this claim MIXED.
