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Business News of Monday, 9 September 2024

Source: www.ghanaweb.com

'Kwame Nkrumah's Cedi is crying for help'! - Dr. John Kwakye laments

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Director of Research at the Institute of Economic Affairs, Dr. John Kwakye Director of Research at the Institute of Economic Affairs, Dr. John Kwakye

The gradual weakening of the local currency, the Cedi, against major trading currencies, especially the US Dollar, Pound Sterling, and Euro, has become a worry for the business community and Ghanaians as a whole.

Since the beginning of this year, the cedi has depreciated by 22 percent, impacting on the cost of living, and the prices of goods and services.

In view of this, the Director of Research at the Institute of Economic Affairs (IEA), Dr. John Kwakye, has stated that the local currency needs to be stabilised as soon as possible.

He opined that the Cedi and Naira were the two most mismanaged currencies in Africa and the world.

In a series of tweets sighted by GhanaWeb Business, Dr. John Kwakye said, "Kwame Nkrumah’s Cedi is crying for help! After 67 years of political independence, we can’t maintain a strong, stable currency. Pitiful! A currency that has depreciated by 22% this year is being described by our economic managers as stable. Seriously?"

"If our economic managers do not know how to stabilize the Cedi, then they don’t deserve to be at post. The Cedi and the Naira are the two most mismanaged currencies in Africa and the world," the senior economist added.

The cedi is currently selling at GH¢16.14 to US$1 and GH¢21.04 to £1 at some forex bureaus in Accra.

Despite efforts by the government to stabilize the local currency, the cedi remains uncompetitive.

However, the Minister of Finance, Dr. Mohammed Amin Adam, during the 2024 mid-year budget presentation in parliament, asserted that the exchange rate has been largely stabilized compared to what was recorded in December 2022.

Dr. Amin Adam said the 18.6% depreciation of the Cedi to the US Dollar as of June 2024 represents an improvement over the 22% recorded for the same period last year.

He stated categorically that the economy was rebounding stronger than expected.

SA/MA

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