The Sharp Depreciation of the Cedi,

In the last few months the Ghana Cedi has lost grounds against the major international currencies such as the United States Dollar, the British Pound Sterling and the European Union Euro. The speed of depreciation of the cedi seems to have taken everybody by surprise.
Not long ago, when the cedi was redenominated in 2006, a Dollar could be exchanged for less than a Cedi and out of excitement for seeing our currency robbing shoulders with such a major currency as the United States Dollar, some people named the Cedi, “Kuffour Dollar” perhaps in expression of their happiness for seeing the Cedi rising in value against the Dollar.
Unfortunately, the appreciation was not sustainable because it was not backed by the expected macroeconomic fundamentals. Therefore, the Cedi started losing value until today that we are witnessing one of the most difficult times in the life of the Cedi. At present, one Dollar is worth almost equivalent to two Cedis. This is bringing untold hardship on the economy. What has gone wrong?
Several people, including economic gurus and businessmen in Ghana, have suggested numerous methods or mechanisms for arresting the fall in the value of the Cedi. Just about a week ago rumours had it that Bank of Ghana was considering the prevention of individuals and some businesses from keeping foreign currency accounts in Ghanaian banks.
The intuition behind this is simple and as one school of thought puts it “If you are in Ghana, why do you have to keep a bank account in a foreign currency? We have the Cedi that should be sufficient for us”, meaning all accounts in Ghana should be held in Cedis. Of course, this line of thinking is commendable and strongly backs the argument that Ghanaians do not need to keep accounts in foreign currencies whilst in Ghana. The question is, is that the root-cause of the Cedis’ sharp depreciation in value?
Some even argue that currency traders are to be blamed; since they keep accounts in foreign currencies they speculate on the value of the Cedi in order to profit from its depreciation and appreciation.
Others have put the blame on importers. They explain that foreign currencies are required by importers for international transactions and this leads to excess of demand over the supply of scarce foreign currencies thereby causing unnecessary pressure which ends up in sharp decrease in the value of the Cedi. They contend that in the heat of shortage of foreign currencies, people are less careful in terms of how many Cedis they have to exchange for a much- needed foreign currency, be it the Dollar, Euro or Pound Sterling.
The debate as to who or what is the cause of the Cedis’ sharp depreciation in value may go on unabated. Interestingly, the Central Bank has stepped in to salvage the situation. However, this has fuelled the rumour that the solution being proposed may end up preventing people from keeping accounts with Ghanaian banks in foreign currencies. This is the focus of this article. The big question I ask is, will the prevention from keeping foreign currency accounts in Ghanaian banks do the trick of helping the battered cedi gain some strengths against its foreign counterparts especially against the likes of the Euro, Pound and Dollar?
Is Ghana going to revert to the days where people used to keep their foreign currencies under “pillows” and in “bunkers” in their bed rooms? It is being argued that preventing people from keeping accounts in foreign currencies in Ghanaian banks may not answer the question of why that sharp depreciation in the value of the Cedi, rather it may worsen the situation.
If Ghanaians are prevented from keeping foreign currency accounts, numerous issues may result. Foreign currencies are likely to be a contraband item and most people will horde or hide them wherever they can instead of keeping them with their bankers. Also, what will the foreign exchange bureaux do, are they to cease operations?
One point that raises fear is that people are likely to keep their foreign currency accounts in banks in neighboring countries through proxies which may work to the advantage of our neighbours – Togo, Benin, Cote D’Ivoire etc.
Instead of preventing or penalizing people for holding accounts in foreign currencies which may end up creating an unwanted “black market” in foreign currencies, such accounts must rather be allowed and that deposit of foreign currencies in these accounts must be encouraged. It should rather be withdrawals in foreign currencies that must be restricted, discouraged or penalised through the tightening of the exchange control regulations.
Ghanaians must not be encouraged to make their homes, their banks for foreign currencies; they should be encouraged to deposit them with the banks to increase the supply of foreign currencies with withdrawals allowed only in Cedis. My submission is that the prevention from or penalization for holding a foreign currency accounts in Ghana as being proposed by many may not do the trick in helping to arrest the sharp depreciation in the value of the cedi.
By Rita Appiah
Business Development Consultant

Corporate Executive Development Centre
A Management Development and Financial Advisory Firm
cedecconsult@yahoo.com

EXCITING OFFERS FROM SKYY+

Skyy+, the latest bouquet from Skyy Media Group, is a package that offers a variety of exciting channels which are appealing to the entire family.

The over 22 channel-bouquet includes a variety of programmes from sport, entertainment, movies, music, religious among others.

Aside employing an Mpeg4 technology to enhance the viewing pleasure of subscribers, Skyy+ also boast of appealing channels and content. ASN, a sports channel on Skyy+ offers viewers 24 hours sports action from Kotoko TV, Arsenal TV, English Premier League, Italian Serie “A”, NBA, Boxing and Athletics among others. HiNolly and Cinimax bring viewers the best Ghanaian and Nigerian movies, series, comedy and entertainment shows. Other channels on the package include Showtime, a Hollywood movie channel, Fox Entertainment, a series channel, Channel D for democracy and documentary, BBC World to keep viewers abreast with news across the globe, Kidsco for kids and many more.

Skyy Media group is offering its subscribers an exciting offer in the first 2 months of launching Skyy+. Subscribers who buy the one month subscription will get an additional month free.

 

Unveiling the brand some few weeks ago, Mr. Wilson Arthur, Chief Executive Officer of Skyy Media Group stated that “to ensure that the larger Ghanaian populace has a feel of the Skyy+ experience, all new subscribers will enjoy a one month free subscription upon the payment of the first month subscription.  This offer will run for a period of two (2) months until July 31st”. He continued, “Customers would benefit from a stress-free payment of subscription through the use of recharge scratch cards which are available in over 30 distribution outlets in Greater Accra”.

He reiterated that the offer is available in the Greater Accra Region whilst plans are at an advanced stage to extend it to other parts of the country.

Mr. Arthur assured Skyy+ subscribers as well as potential subscribers that the Sky Media Group is sourcing for new quality programs that will further enhance their viewing experience, hence, encouraged Ghanaians to be part of the ever increasing Skyy+ family.

MULTICHOICE GHANA FETES TOP 50 SUBSCRIBERS

On Africa Day, May 25, Multichoice Africa hosted its top 50 subscribers to an interactive brunch at the Golden Tulip hotel in Accra. Africa Day is the annual commemoration on May 25 of the 1963 founding of the Organisation of African Unity (OAU).and a day for all Africans to reflect and review on the idea of a politically, economically and socially integrated African Union and the progress made towards it.

Multichoice Ghana saw it as a day to say thank you to their subscribers, celebrate their achievements, plan to improve on shortcomings, assess milestones and to set new goals for the year ahead. Multichoice used this opportunity to obtain feedback from its oldest customers as well as to educate them on some of the companies latest services such as the HD PVR, DStv on Deman

Multichoice Ghana General Manager Cecil Sunkwa-Mills said that “Multichoice Ghana and DStv constantly is constantly setting goals and targets to enhance our product value for our subscribers and it is only our subscribers who can ensure that we give them what they want with their feedback”.  He also thanked subscribers “for subscribing to our services and in doing so partnering with us to continue to build a good business in Ghana and Africa as a whole”.

The event was rounded off by a quiz for which the guests won DStv souveniers, as well as an HD PVR decoder which was won in a raffle draw by Mr Brock

Skyy Digital Introduces Skyy+ In Accra

In February 2009 Skyy Media Group emerged on the national scene from the Western Region with an Eight Channel DVB-T bouquet called Skyy Digital on MPEG2 decoders. With time, Skyy digital service was extended to Sekondi Takoradi, Koforidua, Kumasi and Cape Coast enhanced with two additional Channels.

In response to customers demand for live Sports Content and premium Movie and other contents, Skyy Media Group has introduced a new Pay TV bouquet called Skyy Plus. Born out of collaboration between Skyy Media Group and Next Generation Broadcasting (NGB), the new bouquet is aimed at making available to millions of Ghanaians, high quality television programmes and channels at an affordable price.

Speaking at the launch, Mr. Wilson Arthur, CEO of Skyy Media Group said, “we see this commercial arrangement with NGB as very strategic as we pool together our expertise and Television Content, to ensure the viewing experience of many homes in Ghana are enriched”.

According to Mr Arthur, Skyy+ covers the world of entertainment, news, sports, local, African and foreign movies to channels for kids. With Skyy+, customers would be assured of a bouquet that has something in it for every member of the family. With a monthly subscription of Sixteen Ghana cedis (GHs16.00), Skyy+ customers can access quality programmes on the following channels;

Fox entertainment, Channel D, Showtime, Cinimax, Kidsco, ASN, BBC, Hi-Nolly, Fiesta, Skyy World, Skyy 1, Emmanuel TV

This is in addition to other free to air Digital Terrestrial Television channels.

Beyond the improved content on Skyy+, Skyy Media Group has introduced an innovative mode of payment that allows Skyy+ customers the convenience of paying monthly subscription by the use of scratch cards.

Skyy+ service is only available in the Greater Accra market for now. Skyy digital Customers in Koforidua, Kumasi, Cape Coast and Sekondi Takoradi will continue enjoying the ten Channel bouquet. The enhanced Skyy+ service will be extended to other Cities in a few weeks’ time.

As part of efforts to ensure a smooth migration to the new bouquet, Skyy Media Group is offering its existing Skyy digital customers a free upgrade to an MPEG4 Set-Top-Box and pay four (4) months subscription upfront. “We want our existing customers to be the first to enjoy the value we are offering hence this attractive offer,” disclosed the soft spoken CEO.

According to Mr Arthur, there will be a limited period of simulcast of four free mpeg2 Channels alongside Skyy+ channels on MPEG4, to give customers enough time to exchange the MPEG2 Decoders for the MPEG4 decoders. Also, to give a larger number of Ghanaians a feel of the Skyy+ experience, all new subscribers will enjoy a free month subscription upon the payment of the first month subscription. This special offer will run for a period of two (2) months only.

In her speech the Country Manager of NGB, Mrs. Yvonne Osei-Tutu, stated that their avowed objective is to ensure television viewers in Ghana have access to world-class channels and programmes and “it was in the light of this that NGB embraced the prospects of collaboration with Skyy Media Group with all seriousness. Today, as we witness the results of this collaboration, we are delighted that this will not only further enrich the content provided by Skyy Media Group but also help in the fulfillment of our objective.”

She was highly confident that the relationship will not only ensure the provision of new channels and contents on Skyy Digital, but also, the necessary synergies between the two companies will be realized. The Skyy is really the limit.

FRAUDSTERS ALL OVER THE STREETS OF ACCRA…………..…ARE WE SAFE??????????

There are a lot of parasites (fraudsters, tricksters, swindlers, suckers, crooks, ‘sakawa’, 419, name them...) in town these days, especially on the streets of Accra, Ghana. People of varied ages; from the elderly to the

youngsters, both male and female ... all engage in fraudulent activities on the streets of Accra.

They come with varied schemes either using the holy name of God (very religious), charitable solicitations, children, deceased spouse, sick relations, hospitalization, business opportunities, and career development opportunities etc to weigh your humanity.

Some monitor your daily activities, others spy, and some solicit information from unsuspecting friends or neighbours, while others use sheer rip-off intelligence.

Whichever strategy they may employ, their goal is to explore your vulnerabilities and use them to the max. Sure! You may be intelligent, know better and even pride yourself in your smartness for never falling prey to any kind of game. But…..until you are pulled right in, you may perceive yourself as Smarter with the abilities to rule your world………

Now I share this sad experience publicly to arm you with information so you don't fall victim to these Heinous Inhuman Suckers (H.I.S).

……Having made friends with a ‘stranger’ who chanced on me on phone (dialed my number) 2 months ago, I least suspected him as a ‘prophet of doom’. He introduced himself as [George Asante (fake identity)] a pharmacist practising in UK with some white friends.

Having familiarized himself with me through several phone conversations, he called me with 00447045719128 (UK T-mobile) to give me a mobile number (MTN 0244…..) of a bogus importer (Dr. Asumah) based in Ghana who imports Moringa Powder from ROCHE PHARMACEUTICALS INC in South Africa to Ghana, {same source as he (George Asante) imports from South Africa to England} to contact and order some Moringa Powder on his behalf since, his orders for Moringa stock from the Manufacturer in South Africa had proved futile. According to him, the manufacturers (ROCHE PHARMACEUTICALS INC)  had run out of stock and could only honour his request in six months, because ROCHE PHARMACEUTICALS INC, the manufacturers had a tall list of orders to supply in the pending 6 months before his turn.

 I asked a great deal of questions and like many fraudsters he could provide suitable answers to all the questions. Just like any other swindler, he knew what to say, how to say it…… He was very persuasive and knew all of the angles using all types of excuses, explanations, and offers to lead *me and my money * away from common sense.

After a short deliberation and varied opinions from friends, I decided to take the risk…because of the outrageous profits I was going to earn from the business, thus buying a sachet of Moringa Powder at a reduced price of GH¢100 from (Dr. Asumah) and selling to Heink (the so-called Director of the Pharmacy in England) who agreed to, in turn, pay $100 for each sachet of Moringa Powder, I went helter skelter borrowing and discontinuing my investments to earn more…in my addled mind I really thought I was ‘winning’, ……

..I was made to buy a sample for verification in their lab in the UK, after which I was lured to invest more.… Heink (director of the syndicate) called to inform me that the sample he received was perfect same as the ones they import from SA, hence he needed a billion dollar worth of the Moringa Powder…he was sending down money through (Alex) his contacts in Tema to buy more from me. I yielded to everything I was asked to do………..Little did I know,………………………………….

I went soliciting loans from various sources including terminating my fixed deposits. In all, I could raise GH¢20,000 which I hurriedly contacted the bogus importer (Dr. Asumah) to do the supply. He, in turn, sent his warehouse attendant {(Kofi) fake identity} do the delivery.., (meanwhile, the fake UK pharmacists were in close contact with me).

Just upon the receipt of the payments (GH¢20,000) from me, Kofi the warehouse attendant sped off in the taxi cab he came with, then suddenly all the mobile phones of the syndicate (Heink, George Asante, Dr. Asumani, Kofi and Alex) went off.

YES THAT WAS MY END! THEY HAD SWINDLED ME LIVE AND COLORED IN A BROAD DAY LIGHT……………………

…SURE!!! THE LAZY COCOONS who reap where they have not sown succeeded in putting me in pain.

THE PRICE I PAID FOR TRUSTING PEOPLE IS GH¢20,000. YOU DON’T WANT TO EXPERIENCE THIS !!!!

Please beware of them; on the phone, on internet, in mails/e-mails, in person – it’s all the same when it comes to fraudulent offers from unscrupulous manipulators of the con game.

 Hang up the phone on strangers who may engage in ‘unnecessary conversations’

 Hang up on strangers who call you with ’hidden identity’ their caller ID either appears as 00000, private number, no number, etc

 Do not respond to shady mailings or emails.

 Do not be too open to share or give out financial/banking information to strangers.

 Do not embrace every investment (all that glitter may not gold)

 Never believe any quick money making offers.

 Never give out your personal information to anyone for any reason that you do not know and cannot verify 100%

 Education, good judgment, and a healthy dose of skepticism are the best defenses against becoming a victim. Educate yourselves and . . if it sounds too good to be true –

 IT IS A FRAUD! Remember, if it looks too good to be true, it probably is!

 Watch out for these characteristics when you are in a quandary  They have answers to all your questions
 They are very persuasive and know all of the angles using all types of excuses, explanations, and offers to lead *you and your money * away from common sense.
 They make you guilty for when they sense an "attack on their integrity" (questioning them)
 They won’t rush you through to make you suspicious of their activities …even if it has to be a year or two; they have all the time in the world for you.
 They operate every bit of information they have gathered about you through the naivety and ignorance of close relations, neighbors or even by yourself. (be watchful of the information you give out)


There are not enough warnings, There are not enough Radio and/or T.V. shows about the subject, There are not enough catches (arrests), There is not enough being done to stop these SUCKERS from feeding on innocent blood……………


My favourite quote now is:
DO NOT TRUST ANYBODY NOT EVEN YOURSELF because given a situation people (you) can do anything to survive…… even when they (you) have to kill to survive they (you) will.


These times are turning darker and darker… in this part of the world. …………………I will forever be sorry for falling into this trap and sorry for other naïve people who are ignorant of these fraudulent activities… I will be, for who knows who will be next after me.

 Please help in the fight against fraudulent activities …….… Report every suspicious person(s), phone calls, mails/e-mails…etc………………everyone is at risk, they have various strategies and avenues of pitching their frauds…


You can share this with friends and relations….........who knows! you could be saving a loved one from falling prey to 'DOGS'.