Dollar is selling at GHS15.15 today

US Dollar (USD) to Ghana Cedi is Ghs15.15 today: Impact on disposal income

US Dollar (USD) to Ghana Cedi is Ghs15.15 today. The current exchange rate of 1 US Dollar (USD) to 15.15 Ghana Cedis (GHS) has several negative impacts on ordinary Ghanaians and their disposable incomes. Here are five key points:

  1. Increased Cost of Imported Goods:
    • Impact: As the exchange rate rises, imported goods become more expensive.
    • Explanation: Ghana relies heavily on imports for many essential goods, including food, clothing, electronics, and medical supplies. When the cedi depreciates against the dollar, importers have to pay more cedis to acquire the same amount of goods. This cost is often passed on to consumers, leading to higher prices in local markets. Consequently, ordinary Ghanaians find it more difficult to afford these goods, reducing their overall purchasing power and disposable income.
  2. Rising Fuel Prices:
    • Impact: The cost of fuel increases with the depreciation of the cedi.
    • Explanation: Fuel prices in Ghana are significantly influenced by the international market, which trades in US dollars. As the cedi weakens, the cost of importing fuel rises. This not only affects the price at the pump but also has a ripple effect on transportation costs and the price of goods transported within the country. Higher fuel costs increase living expenses, leaving less disposable income for other needs.
  3. Inflation and Reduced Purchasing Power:
    • Impact: Inflation rates increase, eroding the value of money.
    • Explanation: A weaker cedi often leads to higher inflation. As prices for goods and services rise, the real value of money decreases. This means that ordinary Ghanaians need more cedis to buy the same amount of goods and services, reducing their purchasing power. For those on fixed incomes or without salary adjustments to match inflation, this situation is particularly challenging, as they see a real decline in their disposable income.
  4. Increased Cost of Education and Healthcare:
    • Impact: Education and healthcare costs rise.
    • Explanation: Many educational institutions and healthcare providers import supplies, equipment, and services from abroad. The depreciation of the cedi increases the cost of these imports. Schools may raise tuition fees to cover higher expenses, and healthcare facilities may charge more for services and medications. Families then have to allocate a larger portion of their income to education and healthcare, reducing the amount available for other expenditures.
  5. Higher Debt Servicing Costs:
    • Impact: Debt servicing becomes more expensive.
    • Explanation: Ghana’s government and businesses often borrow in US dollars. When the cedi depreciates, the cost of servicing these debts in local currency terms increases. This can lead to higher taxes or reduced government spending on social services as the government tries to manage its budget. For ordinary Ghanaians, this can translate into fewer public services or higher taxes, both of which reduce disposable income.

Overall, the depreciation of the Ghanaian cedi against the US dollar significantly impacts the cost of living, reducing the disposable income of ordinary Ghanaians and making it harder for them to afford essential goods and services.

READ: Latest dollar-to-cedi exchange rates: Dollar is selling at GHS15.15 today

Currency Sell Rate
 US Dollar¹ (USD) 15.15
 British Pound (GBP) 19.20
 Euros (EUR) 16.40
 Canadian Dollar (CAD) 12.00
 Swiss Franc (CHF) 16.50
 Naira² (NGN) 13.00
 South African Rand (ZAR) 1.20
 West African CFA² (XOF) 24.50

 

Currency Buy Rate
 US Dollar¹ (USD) 14.85
 British Pound (GBP) 18.50
 Euros (EUR) 15.80
 Canadian Dollar (CAD) 11.00
 Swiss Franc (CHF) 15.50
 Naira² (NGN) 9.00
 South African Rand (ZAR) 0.40
 West African CFA² (XOF) 22.00
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