Gov't takes EIU warnings in good faith – Oppong Nkrumah

Kojo Oppong Nkrumah has reiterated government's commitment to seeing through measures aimed at stabilizing the Ghanaian Cedi against major trading currencies, especially the U.S. dollar.

This follows warnings by the  UK based Economist Intelligence Unit that the country's currency will depreciate to 6 cedis to a dollar by 2022.

Economist Intelligence Unit predictions 

The Ghanaian cedi is projected to hit 6 cedis to a dollar by 2022. This is the prediction of the Economist Intelligence Unit, a specialist publisher in the UK.

The Economist Intelligence Unit, which has operated for about 60 years also warned that the local currency may suffer some external pressures that may cause the cedi to depreciate by next year.

The EIU report cited prospective tighter monetary policy in the U.S. from the latter part of 2018 into next year, and the renewal of political uncertainties associated with Ghana’s 2020 elections, as some of the basis for the prediction. 

Ghana Government's Position on EIU's Predictions

Deputy Minister of Information, Kojo Oppong Nkrumah in an interview said government takes the caution in good faith. He is however confident policies and measures put in place by the managers of the economy will ensure the stability of the cedi in the short, medium to long-term.

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“The prediction uses the word ‘may’ and explains what could make it happen. It also talks about what could happen if there are election-related pressures and makes other analysis. For example, currently, our balance of trade and consequently our balance of payment is improved, and, if we are not able to keep on that track… may put us in that position."

The Ofoase-Ayirebi lawmaker continued that government has taken note of the circumstances under which the predictions would materialize and these have already been factored into the nation's fiscal policies over the coming years. According to him the recent improvement in Ghana's macroeconomic indicators should give hope that the nation's economy is in better hands.

“If you look at the current numbers that are being churned out in terms of our political risk insurance quite recently, even old transactions that were yet to be consummated have had to be reviewed downwards because our political risk insurance has improved following how we conducted ourselves in the last election despite the fears by organisations like the Economic Intelligence Unit that we may go southwards” he said.

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As at this morning,[January 3, 2018] the cedi traded at 4.45 to the dollar on the interbank foreign exchange market.  This is marginally higher than average exchange rate of 4.35 cedis recorded in 2017.

 

primenewsghana.com/Ghana News