| General News
[ 2015-03-27 ]
Ecobank MD proposes currency hedging to mitigate impact of cedi fall The Managing Director of Ecobank, Sam
Ashitey-Adjei, has suggested currency hedging to
reduce the impact of the declining cedi on big
businesses.
He told Joy Business after the launch of its SME
Club that options such as currency hedging, along
with similar risk management strategies can help
lessen the burden most businesses are currently
carrying.
He however noted that the effectiveness of hedging
will depend on big businesses' ability to get
hedging counterparts.
"You will always have to be in the middle. You do
a forward for a client and you have to do a
reverse forward with another counterpart to hedge
yourselves. We only do that when we have
counterparties", he said.
He noted that the challenge with hedging has to do
the nature of Ghana's market, which he
acknowledges is not deep enough to support
currency hedging.
The local currency from January to date has
depreciated against the dollar by a little over 12
per cent.
The cedi-dollar exchange rate currently stands at
GH¢3, 77 pesewas.
Source - MyjoyOnline
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