The Director of Research at the Institute of Economic Affairs(IEA) Dr John Kwakye has asked the Ministry of Finance to improve the economic fundamentals in order to consolidate the gains of the Cedi against the Dollar.
Dr Kwakye feared that the cedi’s performance may not last if the government does not act immediately to improve the economic fundamentals.
The local currency has over the past few days, especially since the start of December 2022, been gaining strength against the major trading currencies particularly, the Dollar.
Per the Bank of Ghana (BoG) rate, the Cedi, as of Thursday December 15, was buying at GHS7.9975 to a Dollar and and selling at GHS8.0056 to a Dollar.
Bank of Ghana Exchange Rates pic.twitter.com/HREBnMQezt
— Bank of Ghana (@thebankofghana) December 16, 2022
Reacting to this Dr Kwakye tweeted that “Unless the cedi is backed by improved economic fundamentals, its stability will not last. The current stability is riding only on the back of reduced speculation.”
He added “The question is how long will the cedi stability last? We have been here before. The way to ensure lasting cedi stability is to address the economy’s structural weaknesses while building strong financial buffers.”
By Laud Nartey|3news.com|Ghana