Presidential Staffer Mr Dennis Miracles Aboagye has said that the sudden rise of the Cedi and the recovery against the dollar is as a result of the ‘unflinching’ support and confidence of Ghanaian citizens in the government.
He said the support Ghanaians are giving to the government is bearing fruits.
“We fall, we rise,” he said.
He further indicated that due to the Cedi performance, “Car Spare Parts prices have been reduced by up to 15%. Hopefully, further deeper reduction early January as well”
In order to hold on to the gains made by the Cedi against the Dollar in the long term, the Government of Ghana has been urged to improve on the macro economic management.
The Cedi has since the start of December 2022, been gaining strength against the major trading currencies particularly, the Dollar.
Per the Bank of Ghana (BoG) rate, the Cedi, as of Thursday December 15, was buying at GHS7.9975 to a Dollar and and selling at GHS8.0056 to a Dollar.
Reacting to this trend, the Vice President of Imani Africa Bright Simons indicated “The people deserve this happiness after the stress of recent months. But the leaders should worry about ANY wild swings. Volatility of this type is a sign of fever not recovery,” he said.
He further explained that “Eventually a currency moves to its ‘real effective exchange rate’ as measured by macroeconomic differentials between Ghana and its main trading partners. That is the only guide to how the Cedi will perform over coming months.
“Macro management has to improve in Ghana for Cedi to hold up,” he stressed.
For his part, the Director of Research at the Institute of Economic Affairs (IEA) Dr John Kwakye attributed the Cedi’s improved performance against the Dollar to reduction in speculations in the financial market.
Dr Kwakye asked the government to act immediately to consolidate the gains made.
In a tweet, he said “Unless the cedi is backed by improved economic fundamentals, its stability will not last. The current stability is riding only on the back of reduced speculation.”
He added “The cedi appreciation is a correction to largely speculation-fueled depreciation. However, the extreme volatility in the exchange rate is not good for the economy.”