According to him, the Cedi is currently surviving on pain killers.
ADVERTISEMENT
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
Recommended articles
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.
ADVERTISEMENT
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.
Member of Parliament (MP) for Bolgatanga Central Constituency, Isaac Adongo
Pulse Ghana
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.
ADVERTISEMENT
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.
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.com.gh
Recommended articles
Trailblazing Prof. Jane Agyemang: The political powerhouse shaking up the NDC!
John Mahama can’t succeed me as President because I defeated him twice – Akufo-Addo
I won’t be a driver’s mate to John Mahama – Prof. Naana Opoku-Agyeman
‘Dumsor’ challenges will end in a few days – ECG Board Chairman assures Ghanaians
We’ll prosecute corrupt appointees under Akufo-Addo’s govt – Prof. Opoku-Agyeman
How First and Second Ladies rejected and refunded all allowances given to them since 2017
Russian Deputy Defence Minister, Ivanov detained for accepting large bribes
Vice President Dr. Bawumia meets Pope Francis in Rome
