Ghana’s Finance Minister, Ken Ofori Atta has asked Ghanaians not to live in fear over the significant depreciation of the Cedi.
The Ghana Cedi’s problems have gotten worse as the exchange rate has dropped from GHC14.50 to $1 less than a day after touching GHC13.5 to $1 on October 20.
This amounts to a devaluation of around 13% in just four days this week.
But Ken Ofori Atta is confident that, as a result of the government’s initiatives, the economy will soon recover and the Cedi will stabilize.
“It is a bit perplexing but as you know, typically we go to market at the beginning of the year and get our 2 billion, this we were not able to do. We were able to get our 750 from AfroExim and in the summer – August or so things stabilized a bit. Then we moved on traditionally as we do with the ASL (Annual Syndicated Loan) of COCOBOD and that came in very strongly. So it’s a bit perplexing to see where it’s going.”
“Of course, typically in October, people are importing for Christmas, and maybe there’s a rush for that. But my expectation is that once we also conclude with the Fund, that will lead to the Fund’s disbursement early next year. With the support we are getting from countries like Germany, France etcetera, we are confident that we’ll get the resources needed. So we really will want people not to panic or be rushing for that pressure on the currency. I think it is unnecessary, and we are in good shape,” Mr Ofori Atta said in an interview in Washington.
Source: Mybrytnewsroom.com/Joseph Asare
