Recent Stability of the Ghana Cedi cannot be attributed to efforts of BoG – IMANI

By SpyDa On Mar 1, 2020

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IMANI Africa President, Franklin Cudjoe, has indicated that the recent stability recorded by the Ghana Cedi cannot be attributed to the efforts of the Bank of Ghana.

Franklin Cudjoe stated that the appreciation of the cedi in recent weeks is a result of external forces of which the activities of the Central Bank cannot be said to be a contributory factor.

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Speaking to journalists, Franklin Cudjoe indicated that Ghana is benefiting from the declining economic fortunes of China since their economic activity has significantly reduced affecting the demand for dollars for trading activities in China by Ghanaian businesses.

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He, therefore, called on Ghanaians not to jubilate yet since the tables can turn around anytime soon.

“The plummeting fortunes of China, and to think that most of our traders are no longer externalizing our dollars outside of the country has also impacted. I think it is early days yet to start jubilating. The stability of the currency so far, it is not necessarily any stellar effort by the central bank even though the forward sale of currency is useful,” the founding president of IMANI-Africa told the media.

According to Franklin Cudjoe, the Central Bank must take advantage of the situation and institute more sustainable measures for the long term stability of the currency.

The local currency has enjoyed a good run against its major trading partners in the first two months of the year, appreciating against all the three major currencies, the Dollar, Euro, and Pound Sterling, according to data released by the Bank of Ghana.

The Cedi, which depreciated against all the three currencies last year during same period, has found a renewed strength and has so far held its own to make gains on its trading partners.

According to the Bank of Ghana’s Summary of Economic and Financial Data, the Cedi in the first month of the year has so far appreciated 0.3 percent against the dollar, made a 1.9 percent gain on the British pound, while recording a 2.3 percent appreciation against the Euro.

Source: ABCNewsGh.com

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