Minister of Information designate, Kojo Oppong Nkrumah has said that the Akufo-Addo-led government has fixed the fundamentals of the economy to sustain the strength of the cedi.

He explained that one of the traditional causes of the cedi depreciation is the lack of dollar reserve which makes people panic to buy more dollars than they usually need.

Speaking on Accra-based Adom FM Mr Oppong Nkrumah said reports that the dollar rise is causing people to buy dollars and save for future use which increases the price when supply does not meet demand.

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Mr Oppong Nkrumah added that the crisis in the banking sector is also responsible for some of the challenges in the economy. These have led to people withdrawing their savings and converting them to dollars.

He says the US pressure has depreciated a lot of currencies across the globe with “Argentina falling by 50.23 per cent, Turkey by 42.3%, South Africa by 19.24%, India by 11.27% , the British Pound by 4.29% and the Euro almost 4%”, meaning the cedi has performed relatively well by reducing at 7% to the dollar.”

He said the BoG is doing all it can to ensure that demand meets supply.

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“Firstly, BoG is increasing the supply enough to meet even the increased demand particularly from the US market, secondly, we must properly explain for those who don’t understand to understand so that people would know there is enough reserve to meet the demand to prevent the panic withdrawal resulting from resolving the banking crises.”

Meanwhile, Greater Accra regional Chair of GUTA, David Amoateng, called on the government to check the operations of the black market which is also contributing to the performance of the cedi.

Mr Amoateng said the black market operators do not follow the BoG approved forex rates which is a key contributor to the problem.