President John Dramani Mahama has assured the Federation of Association of Ghanaian Exporters (FAGE) that the Ghana Cedi is expected to stabilize between GHS10 and GHS12 against $1.
Speaking at a meeting with FAGE at the presidency on Tuesday, the President explained that a realistic and stable exchange rate is crucial for planning and sustaining export growth.
He noted that while importers benefit from a stronger cedi, there is the need to strike a fair balance in order not to harm the broader economy.
“I mean, with our A-level economics, we all know that it’s a balance between imports and exports. What it means is that it makes your imports cheaper and your exports more expensive and so there must be a fair balance to try and achieve the true value of the cedi. Some people say, oh, it will come down to four, but of course, we know the true value of the cedi is not four. And if it went as far down as four, it will kill all your export businesses.”
He continued: “And so myself, the governor of the [Central Bank] and the finance minister met and discussed it. And I think that the real value of the cedi is anywhere between 10 and 12. Luckily, the Forex auction has brought it to just above 10, and it appears to have stabilized there.”
The president urged importers not to take advantage of the cedi gains by flooding the domestic market with foreign products.
He called on businesspersons to produce more local products so the country can reap economic benefits.
Source: Ghana/Starrfm.com.gh/Mitchell Asare Amoamah
