President Nana Akufo-Addo says the government is doing all it can to halt the free fall of the Cedi, which has depreciated against the dollar from GHc 4.9 to over GHc 5 in the last two months.
Speaking at the commissioning of a factory at Kpone on Wednesday, he said: “I’m aware of the anxiety in business circles and the population about the recent depreciation of the Cedi. I am extremely upset and anxious about it too.”
“I want to assure that all efforts are being made to arrest the decline and restore the cedi to stability in order to improve the competitiveness of Ghanaian industry. Very soon, we will be seeing the results of our policy,” he added.
The performance of the cedi against major trading currencies is always a major concern in Ghana.
Businesses in the country have complained that the falling cedi is affecting them.
The cedi has consistently depreciated since its redenomination in 2007.
In response to the recent concerns of the strength of the Cedi, the Bank of Ghana turned its attention to the forex market.
It issued directives on how participants in the forex market must conduct their businesses to stabilise the cedi and improve information flow.
The directives were categorized under areas such as ethics, fairness and integrity; general dealings principles and market conduct, as well as risk management compliance among others.
Implementation of the new directives begun on February 25, 2019.
Fundamentals still solid despite cedi depreciation – BoG
Through all this, the government has maintained that its economic fundamentals remain sound.
The Director of Treasury at the Bank of Ghana, Steven Opata, said of this: “If you look at the fiscal situation, it has improved significantly, if you look at the trade account, it’s been very solid. The current account has also been improving. The fundamentals are solid.”
Some observers have suggested that focusing and improving on Ghana’s productive sectors will instead halt the depreciation of the cedi.
The Chief Executive Officer (CEO) of Dalex Finance, Ken Thompson has said: “we import everything and export very little. Over 75 percent of the containers that come into this country go back empty. That is what we should be talking about. “So long as we import everything, the cedi will fall,”
By: Delali Adogla-Bessa & Sammi Wiafe | citinewsroom.com | Ghana