Ghana’s improved international reserve position is likely to enhance price stability, cushion the cedi further and ultimately increase disposable incomes. This is the assertion of the Head of Finance at Merban Capital, Nelson Cudjoe Kuagbedzi.
President John Dramani Mahama earlier this week said Ghana’s reserve cover has increased from 4.7 months in April to six months, marking one of the highest levels recorded in the past 15 years.
In an interview with Citi Business News, Nelson Kuagbedzi urged the government not to relent on these growth indicators.
“It is going to promote stability because once you have a stable currency, we expect that stable currency to translate into other sectors. Individual disposable income and purchasing power will increase as a result of the stability of the cedi.”
He added that ” the stability is as a result of the reserves that have been built over time. In fact, as at the end of December, it was a little over 8 billion Ghana cedis, which represents about three months of import cover. Which means that from December to now, we have doubled the import cover to six months—and that is significant for the economy.”
