Ghan A Global Village, Every Country Has Its Own Currency

Better Essays
1.1 Background Study
Though the world now is a global village, every country has its own currency. In Ghana the currency used is the Ghanaian cedi. There are several Ghana cedi exchange rates but the GHS to USD rate is the most sought-after. The currency symbol and code for the cedi are GHC and GHS respectively. The faring of the exchange rate has a great influence on economic growth and businesses in the country. Over the previous couple of decades, various specialists and academicians have expressed that the exchange rate is essential not just in light of the fact that it encourages worldwide exchange, however it likewise impacts asset portion in different divisions of the economy. Aron, Elbadawi, and Kahn, (2002)
…show more content…
However, the Ghanaian cedi (GHS) reinforced to some degree against the U.S. dollar in 2015. On 5 October, the currency was exchanged at 3.71 GHS per USD. The cedi reinforced impressively after the nation finished up the offer of a USD 1.0 billion Eurobond. The Ghana Cedi, which was initially settled in 1965, has been experiencing thrill ride periods, performing unequivocally against significant exchanging monetary standards at a few focuses while slipping in worth amid other periods. In late circumstances, the Ghana cedi has been slipping in esteem. One of the advantages of money related progression and developing of the monetary area is the narrowing of the interest rate spread. The imperative point deserving of note is that interest of whatever kind should in any event safeguard the worth of money after some time. The worth of money normally decreases with time thus of various components, vital among which is the inflation rate. The fundamental purpose of banking is to serve as a financial intermediation from surplus units of an economy and loaning to shortfall units of an economy. At the point when banks take deposits from clients, they pay interest on these deposits to guarantee that the deposits don 't lose worth over the period that the money is kept with the bank. The interest on deposits is named borrowing rate in acknowledgment of the fact that deposits are perpetually a method for the bank borrowing from people in
    Get Access