Hoarding of dollars cause of Cedi depreciation, Banker
Bloomberg’s report inaccurate, Banker
Chartered banker, Eric Nii Boi Quartey, has discredited reports that the Ghana Cedi has overtaken the Zambian Kwacha to become the worst-performing currency in Africa.
He stated that it is rather the dollar, which is used as a major trading currency in the world that is appreciating against the Cedi.
According to a Bloomberg report cited on myjoyonline.com, the Ghana Cedi has overtaken the Zambian Kwacha as the worst-performing currency in Africa.
The report noted that Ghana and Zambia are not able to address challenges in relation to their large debt stock, revenue mobilisation and expenditure management.
Speaking on Adom FM’s morning show, Dwaso Nsem on Tuesday, March 1, 2022, Mr Quartey said the report could not be accurate.
According to him, the two countries face different challenges, therefore, should not be compared to each other.
He however blamed the depreciation of the local currency, Cedi on non-compliance with banking regulations in Ghana and the act of hoarding dollars in foreign exchange accounts over fears of losing capital.
This, he said, puts pressure on the Cedi, thereby, causing economic depression.
Meanwhile, an Economist at the University of Ghana, Professor Ebo Turkson said, “Government has not failed in the management of the cedi; the depreciation is due to the unnecessary pressure on the cedi coming from the demand side.”
The Cedi currently trades at GH¢7.15 pesewas against major trading currencies at some forex bureau.
File photo of Ghana cedis notes