Although we all would prefer it to be otherwise, money plays an important role in our lives
That is why today’s column on this subject is written by Jeannette Klein, member of the PCC Network and treasurer of the Hand in Hand Foundation in the Netherlands.
Our foundation usually transfers money to PCC once every quarter, money that has been received from donors and sponsors! These transfers are relatively large amounts, so it is wise to check the exchange rate at which we can transfer this money.
At the end of 2024, the Ghanaian Cedi suddenly became much stronger, which was unfavourable for the exchange rate from our point of view.
In September 2024, we received Cedi 17.26 for 1 Euro, but in December only Cedi 15.30, a difference of more than 10%!
As we had indications that this was due to a government intervention (in connection with the Ghanaian elections…) and we suspected that this effect would diminish again after the elections, we only transferred part of the quarterly amount in December.
In February 2025, the exchange rate was Cedi 16.30 for 1 Euro, which meant that splitting this transfer into two parts yielded us approximately 1,200 Euro more than if we had transferred the entire amount all at one time in December.
As a result, PCC had more money available for the same contribution from the Netherlands!
But that was just child’s play…
In April, we were able to transfer money at an exchange rate of 17.60 Cedi to 1 Euro (which was great for us).
At least, that’s what the bank manager in Nkoranza told us. However, when the money arrived a day later, it turned out that the head office in Accra had used a lower exchange rate.
The local bank manager disagreed and intervened on our behalf, which ultimately resulted in the promised exchange rate. We are grateful to him for this, as it saved us approximately € 700 in one day!
How is it now?
Since April, the Cedi has once again become significantly stronger, again due to government intervention.
Currently (= 1st week of August), we are getting around 12.00 Cedi for 1 Euro. That is a decrease of more than 30% compared to April!
This exchange rate is still holding steady, although we assume that this intervention will also have a mainly temporary effect.
For the time being, PCC can fortunately continue with the money that was transferred in April. We are keeping a close eye on the exchange rates and hope that next time we will be able to transfer money at a more favourable rate than would be the case now.
The enormous fluctuations in the exchange rate are unfavourable for both the Ghanaians themselves and foreign parties. It is to be hoped that a stable monetary policy will be implemented in the short term.
Food prices
Although a stronger Cedi should in theory lead to the stabilisation (and even fall) of prices of (imported) goods, this does not (yet) seem to be the case for food prices.
Janet, the highly regarded head of the PCC kitchen, is finding it increasingly difficult to buy sufficient, varied and healthy ingredients for meals within her budget due to weekly price increases.
Initially, this resulted in less varied food at PCC, followed by an adjustment of the budget.
As prices on the Ghanaian market continue to rise, we now look at what is needed on a weekly basis and make the necessary funds available.
Of course, we take into account the prices of seasonal products and negotiate hard when purchasing, but: it costs what it costs!
This ensures that our residents always have sufficient, varied and healthy food. Fortunately and thanks to the involvement of many sponsors and donors, we have the financial resources to make this choice, which is great!