The Senior Partner of Africa Legal Associates (ALA), Gabby Asare Otchere-Darko, has served notice to Ghanaians to be ready for further depreciation of the local currency, the Ghana Cedi, due to the Russia-Ukraine conflict.
The political strategist said other African currencies would suffer the same fate as the US dollar gains due to the ongoing conflict that has affected global oil prices.
Oil prices surge
Oil prices jumped on Friday by nearly three percent on concerns of global supply disruptions from the impact of trade sanctions on major crude and fuel exporter Russia after it invaded Ukraine.
Global benchmark Brent crude rose US$2.81, or 2.8 percent, to US$101.89 a barrel at 0738 GMT on Friday, after climbing to as high as $101.99.
U.S. West Texas Intermediate (WTI) crude touched a high of $95.64 a barrel, and was last up US$2.37, or 2.6 percent, at US$95.18.
The start of the invasion in Ukraine on Thursday caused prices to surge above US$100 a barrel for the first time since 2014, with Brent touching $105, before paring gains by the close of trade.
The massed Russian assault by land, sea and air was the biggest attack on a European state since World War Two, prompting tens of thousands of people to flee their homes.
The Chamber of Petroleum Consumers (COPEC) has warned that if nothing is done by authorities in Ghana, regarding the rising fuel prices on the global market, as Russia invades Ukraine, fuel prices could cross the GHC8 mark at the pumps in the first pricing window of March.
In an interview with the media on the impact of the development in Ukraine on fuel prices at local pumps, COPEC Executive Secretary, Duncan Amoah said things could get worse soon.
“Where you have the third-biggest oil producer and second-biggest producer of natural gas in Russia, currently having an escalation with Ukraine, what you will get is that the supply side is going to be greatly hampered. Once supply side is hampered yet demand continues to grow, prices will only head north,” he said.
“If bombings continue into the weekend, oil will cross $110 a barrel. If the tensions do not de-escalate in Ukraine-Russia now, I can safely see fuel crossing GH¢8.50 per litre at Ghanaian pumps by March 1, 2022,” he added.