The Chief Executive Officer for Women in Forex-Ghana, Gifty Annor-Shika has stated that the cause of the cedi depreciation against major currencies is the result of Ghana’s weak economic fundamentals.
Renowned economists have predicted that the Ghanaian cedi will depreciate hugely in percentage against the US dollar.
The prediction is seeing the light of day as they added that the situation will significantly increase revenue risks for the foreign investors who rely on expatriation of revenues.
Currently, the cedi is inching towards GHC10.00 for one US dollar.
However, speaking on GHOneTV current affairs show State of Affair, madam Annor-Shika pointed out that the nature of Ghana’s economy could stand current global crises such as Russia-Ukraine war among others.
“As the saying goes, when the fundamentals are weak, the exchange rate will expose you. So we have a lot of fiscal and monetary positions that are not going well for the economy. International or other external factors like the covid and the Ukraine war.
“So basically we have weak fundamentals so the Ukraine war and covid sort of exposed our weaknesses. It is more like our shock absorbers were not quite enough to handle those shocks.”
She said since the depreciation is a perennial issue the nation needs a holistic approach to tackle it adding that the nation needs revenue mobilization and reduce importation.
“So that will mean that there should build more companies opening up in the country for made in Ghana goods and all that. Probably we can also improve on our debt affordability metrics.
“The problem is not structural, we need physical reasoning plans, the spending and borrowing and stuff like that has to be minimized. We need the government to increase revenue instead of borrowing.”
Source: Ghana/Starrfm.com.gh/103.5FM
