05 Sep 2024
Ghana and other developing countries are particularly affected by inflation, which is still influencing economies around the globe. Ghanaians living in Italy face challenges in balancing their finances, providing for their relatives back home, and adjusting to life overseas. Knowing how to manage Ghanaian inflation while residing in Italy is essential, particularly while thinking about the most effective way to transfer money to Ghana from Italy. The Ghanaian economy, methods for controlling inflation, and the most effective ways to send money online to Ghana from Italy will all be covered in this article.
Ghana is currently struggling with inflation, which is driven by several variables, including shifting international commodity prices, unstable currency rates, and internal budgetary difficulties. The Ghana Statistical Service reports that, in June 2023, inflation reached 42.5%, a notable rise over prior months. Households are under stress due to the rapid price increase, which has decreased the Ghanaian cedi's purchasing power.
For Ghanaians residing in Italy, the effects of inflation in their homeland can be immense. Due to the skyrocketing cost of living in Ghana, it is becoming increasingly challenging for foreigners to sustain their families financially. It's now essential to send money to Ghana, but doing so effectively calls for meticulous preparation and knowledge of its economic climate.
There is significant evidence that the Ghanaian economy is relatively more robust than it was some years ago, though it remains very sensitive to the vagaries of the global economy. The country has to import most commodities, including foods and fuels, and it is therefore exposed to shifts in world prices. Specifically, real economic depreciation has arisen from the continued decline in the cedi's value relative to other international trading currencies, mainly the euro.
In 2023, the Central Bank of Ghana took some policy measures that involved raising inflation rates through high interest rates and tight monetary policy. However, these measures have had some effects; the cost of living remains high, and inflation is also still rampant.
This, therefore, means that for Ghanaian citizens who reside in Italy, it is very important that they monitor and understand the economic situation in the Ghanaian economy. Some of the considerations include analyzing factors that cause inflation, which will assist the expatriates in planning when they wish to send money to Ghana from Italy.
Financial planning and investment planning are necessary to control inflation, as are efficient methods of transferring money from one hand to another. Here are some critical strategies for Ghanaians living in Italy to manage the impact of inflation in Ghana:
The increased difference in the relationship between the euro and the cedi also influences the value of the money transferred to Ghana. This way, expatriates can assess exchange rates before taking money to note the best time to transfer money to get the best currency value they desire. Using online tools and applications to check exchange rates will help transfer cash at the right time when the euro is strong enough against the cedi to fetch a high amount in Ghana.
Inflation reduces the standard value of money, and hence, those expenses must be well planned for. Ghana’s cost of living is gradually increasing; therefore, expatriates need to draw a budget that will factor in the increased prices and keep an emergency fund. This may include managing the money so they spend little on unimportant things and save more money to take to Ghana.
Investing in or purchasing assets that are relatively immune to inflation can help as a hedge against inflation. It is worth mentioning that inflation favors tangible items, and this is because gold, real estate, other facts, etc., do not lose their value when inflation is on the rise. Thus, the investments in property or land in Ghana could have been a way for the Ghanaians in Italy to cover or safeguard their financial health from the effects of inflation.
Finding the right money transfer service is significant for individuals who want to make an online money transfer from Italy to Ghana. The exchange companies to select should have reasonable exchange rates and lower charges. Online money transfer services continue to become functional, enabling people to transfer their money quickly and securely. Differential analysis and the evaluation of customer feedback will also contribute to selecting an appropriate service.
As a result of relying on more than one source of income to finance the activities and operations of the business, the business is likely to face serious challenges, especially during the inflation period. It is thus recommended that those Ghanaians already in Italy establish other sources of income, such as a second job, self-employment, or investing. This extra source of income can go a long way in narrowing the disparity of hikes in the cost of living in Ghana and financial uncertainties.
Helping local business owners, such as those in Ghana, improve their businesses can go a long way toward improving the economy rather than the effects of inflation. As one sends cash to friends in Ghana via an online transaction originating from Italy, investing in family enterprises or the local economy will be wise. It also benefits your family and works for the well-being of the country's economic systems.
Digital financial services have become instrumental in helping Ghanaians manage inflation arising from such factors. Money transfer from Italy to Ghana, Internet banking, and advanced financial technologies such as mobile and other non-banking microfinance organizations have influenced the population to use them to form funds and investments.
To the study participants, Ghanaians living in Italy, digital financial services are an excellent way to handle monetary affairs within and outside Italy. In effect, recipients of remittances among the poor in Ghana prefer to use mobile money platforms like MTN Mobile Money and Vodafone Cash. Such platforms enable both the givers and recipients to withdraw cash, pay their bills, and purchase other commodities through their mobile phones, effectively eliminating the effects of inflation.
Furthermore, these electronic financial services allow the expatriates to invest in different trading businesses in this country, purchase or invest in real estate properties, and support initiatives in this nation. Thus, through these platforms, Ghanaians residing in Italy can support their country’s economy, ensuring its stability and savings against inflation.
Read more: The Role of Remittances in Ghana's Economy: An Overview.
Another potential area of contention that Ghana is expected to face in the following years is inflation, given the contemporary threats of the global economy. But there is still hope to be optimistic; here are some reasons. The Government of Ghana has implemented various strategies to enhance economic stability, such as policies that seek to increase domestic production of goods and services, decrease imports, and conduct improved fiscal responsibility.
From the above insights, the best bet for Ghanaians living in Italy is to remain informed about the current economic trends since this will determine their approach to handling inflationary impacts. Expatriates have a significant role to play in the financial support of their families and the progress of Ghana, and this can be achieved by making sound financial decisions and having a good mode to send money to Ghana online from Italy back into their home country.
Ghanaians living in Italy may lessen the impact of inflation on their family and assets back home by being aware of the state of the economy, putting wise budgeting and investing tactics into practice, and selecting trustworthy money transfer services. Online money transfers from Italy to Ghana are becoming a crucial part of this process, giving individuals in Ghana who are struggling with growing expenses a lifeline. Despite the challenges brought on by inflation, expats may still provide for their families and contribute to the economic stability of their home country by being educated and making wise financial decisions.
If you live overseas, Ghana's daily inflation challenges might not immediately affect you. However, this may affect your friends and family back home, which in turn might affect remittances and the value of your investments in Ghana.
A number of factors, such as changes in the currency rate, growing fuel prices, shortages of food, and changes in government policy, impact inflation in Ghana.
You can help your family out in a few ways: send more money home, diversify their sources of income, encourage savings, and look into investments that can help protect against inflation.
Despite the potential volatility of the Ghanaian market, invest in assets such as gold, real estate, or stocks of firms that are expected to do well in times of inflation. Always speak with a financial advisor for individualized guidance.
Make use of trustworthy money transfer providers with affordable fees and competitive exchange rates. Seek to compare costs to obtain the most fabulous offer.
