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Transactions in Ghana cannot directly be in dollars, so when a USD price is quoted for a foreign sale behind the scenes what happens is cedis are brought in, co
by dismantlethesun 4y ago
Transactions in Ghana cannot directly be in dollars, so when a USD price is quoted for a foreign sale behind the scenes what happens is cedis are brought in, converted to dollars, then given to the foreign party.
This creates a demand for dollars in Ghana, that puts downward pressure on the cedis.
So this avoids that, hopefully reduces inflation.