Professor Ebo Turkson, an economist and professor with the University of Ghana (UG), has addressed concerns about the recent depreciation of the cedi, expressing confidence that the trend will soon be reversed. He emphasized that the current situation should not be a cause for worry and projected a marginal appreciation of the local currency in the near future.
Speaking at a stakeholder engagement workshop on Special Drawing Rights by the International Monetary Fund, Professor Turkson attributed the depreciation partly to speculative activities fueled by shortages in foreign exchange supply. He highlighted the importance of addressing such speculative behaviors, noting that they could further weaken the currency and adversely affect importers reliant on the dollar for trade.
Professor Turkson expressed optimism regarding expected foreign inflows, suggesting that increased inflows would better position the Central Bank to meet forex demands. He urged caution against unnecessary speculation about the cedi’s depreciation and stressed the importance of focusing on addressing speculative factors.
The cedi has experienced an 7% depreciation against the US dollar since the beginning of 2024, with one dollar now equivalent to GH¢13.60. This depreciation has intensified in the past three weeks, prompting Professor Turkson’s remarks.
In addition to addressing speculative activities, Professor Turkson called for urgent attention to Ghana’s export revenues. He emphasized the necessity of adding more value to natural resources to boost revenue generation, indicating that increased export revenue would be beneficial for stabilizing the currency and the economy as a whole.
Source:norvanreports