Ghana cedi will depreciate and cross GH¢6 before June - Isaac Adongo predicts

Isaac Adongo, Member of Parliament for Bolgatanga Central has predicted that the local currency, Ghana cedi will further depreciate against the major trading currencies before June in this year.

Isaac Adongo

According to him, the Cedi is currently surviving on pain killers.

The MP who doubles as the Member of the Finance Committee of Parliaments said "It is normal for currency in free fall to occasionally rally when managers give false assurances but the market soon reacts when improvement in conditions don't occur. 

"As the government seeks loans to provide short term steroids to resuscitate the sector, it may show some signs of recovery but will soon return to its free fall because steroids don’t provide a cure."

The local currency is still struggling to stabilise against the major international currencies with the US dollar and currently selling at GH¢5.4.


He added that the cedi could cross GH¢6 before the middle of 2019 insisting that calling the Ghanaian business community to brace itself for hard times.

"The cedi will cross GH¢6 to a dollar before half year. What can happen? They can’t borrow three billion long terms to come and solve the problem…now they are going short term and thinking…who has ever survived on pain killers? But that is where we are," Isaac Adongo said in an interview on Metro TV.

However, the Bank of Ghana has announced that it will release some $800 million onto the market to curb the cedi's depreciation.

The Central Bank said it expects the cedi to stabilise against major international currencies especially the dollar.


According to the Head of Financial Markets at the central bank, Steven Opata, the accumulation of more dollars would help increase the net international reserve (NIR) to around $4 billion, enough to provide confidence in the system and help stabilise the free fall of the local currency.

He said one of the strategies it was adopting "is rebuilding reserves to face more systemic shocks that may come."

"I am very optimistic that it will not be long before we see stability and some recovery in the cedi," he added.


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