Cedi depreciation could persist due to anxiety, speculation on the market – ISSER
The Ghana cedi has been struggling against major trading currencies
Cedi struggles against major trading currencies
Read full articleCedi selling for GH¢7.95 to a dollar at some forex bureaus
ISSER advises Ghanaians not to panic
The persistent depreciation of the cedi against major trading currencies could further increase due to heightened anxiety and speculation on the exchange market.
This is the view of Professor Peter Quartey who is the Head of the Economics Division at the Institute of Statistical, Social and Economic Research (ISSER).
Speaking in an interview with Citi Business News, Prof. Quartey argues that anxiety over the cedi’s performance against major trading currencies could affect inflation figures and exchange rate depreciation.
“When we fuel too much anxiety it also affects inflation and exchange rate depreciation. I don’t think we should panic, given where we find ourselves, it’s something that’s happening across the globe. The government needs to fashion out the right policies to help cushion us,” he is quoted by Citi Business News.
He added, “…Otherwise, if we fuel so much anxiety, speculation will come in and people will end up hoarding the foreign currency which will affect the supply of the foreign currency, which will not augur well for us.”
Since the beginning of the year, the cedi has been struggling against major trading currencies, especially the US Dollar.
As of March 14, 2022, the cedi has depreciated significantly against the US Dollar and currently selling for GH¢7.95 at some forex bureaus.
