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RADP / Pulse Ghana  >  news  >  business

Cedi Depreciation: Ghana’s economic fundamentals still solid – BoG

Emmanuel Ayamga

The Director of Treasury at the Bank of Ghana, Steven Opata, says Ghana’s economic fundamentals are still solid despite the continuous depreciation of the cedi.

Ghana’s economic fundamentals still solid – BoG
Ghana’s economic fundamentals still solid – BoG

According to him, the cedi has improved significantly in terms of fiscality and is expected to bounce back soon.

“If you look at the fiscal situation, it has improved significantly, if you look at the trade account, it’s been very solid. The current account has also been improving. The fundamentals are solid,” he told Acra-based Citi FM.

The US dollar is currently selling at between GH¢5.00 and GH¢5.20. 

However, some currency dealers are trading the local currency at GH¢5.30 and GH¢5.32 for a dollar.

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This has led to importers expressing worry over the depreciation of the cedi against foreign currencies like the US dollar and the pound.

The Vice President, Dr. Mahamudu Bawumia, has also come in for strong criticism for not being able to salvage the situation so far.

But Mr. Opata said there are a number of reasons why the cedi continues to depreciate at its current pace.

He, however, added that the Central Bank is putting in place measures to ensure that the cedi bounces back.

“The exchange rate we run in Ghana is a flexible exchange rate regime. The focus should not be on targeting a number because if you do that you may not be getting the whole picture.

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“What are not targeting 5, 6, neither are we targeting 4. What we are looking at is that the currency should not be volatile,” the BoG Director of Treasury added.

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Emmanuel Ayamga Emmanuel Ayamga Writer with special interest in sports and other stories of social interest. Follow him on Twitter @TheAyamga

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