President Akufo-Addo has directed Finance Minister, Ken Ofori-Atta to probe the structural difficulties that cause the recurring depreciation of the currency Ghana Cedi and to address the problem.
In view of this, the Finance Minister has announced the setting up of a bi-partisan Committee to look into the situation.
Addressing Parliament today [Thursday], Ken Ofori-Atta described the country’s exit from the IMF Extended Credit Facility, the over subscription of 2019 Eurobond and the rebound of the cedi in the face of recent difficulties as fruits of the government’s superior economic strategy.
“The President has directed that I investigate the structural causes for the depreciation of the cedi and propose measures to address the situation. The government and I will put a bi partisan committee together to proceed immediately.
“Our current progress on the economy sustained GDP growth and economic transformation will eventually ensure that the currency is stable over the medium term.”
Cedi performing better under Nana Addo
The Minister also indicated that the cedi is performing better under the Nana Addo administration.
The Minister’s assertion comes weeks after a significant depreciation of the cedi.
“The cedi suffered major turbulence during the first quarter of the year mainly as a result of a confluence of factors including pressure on the current account as a result of income transfers by corporate as well as seasonal importers among others.This turbulence happened despite the strong economic fundamentals and improvements in our balance of payments which our government has achieved in the last two years.
“We have done so much work to ensure that the economic fundamentals are robust and able to support economic growth and transformation. It is also note worthy that despite this challenge, the cedi has performed better over the last two years than when compared specifically to 2012 and 2015 ,” said the Minister while addressing Parliament on today [Thursday].
The cedi was initially trading at GHc 5.80 to a dollar but it began gaining strength this week after a government intervention which was actually expected to yield evident results within two weeks.
A former Deputy Finance Minister under Mahama administration, Fifi Kwetey has, however, said the recent appreciation of the cedi is only temporary and will depreciate again.
By: Marian Ansah & Duke Mensah Opoku/citinewsroom.com/Ghana