US$1 would have been 100,000 cedis – Togbe Afede laments Cedi slump

Speaking at the inaugural anti-corruption summit of the Asogli State on Saturday, August 20, he said it was sad that with all the resources God had given Ghana, people were suffering economically.

“Some people are suffering, very low standard of living that they don’t have to, God has given us so much. We see where inflation is now, galloping.”

On the subject of the cedi, he submitted; “…we see what has happened to the cedi, if we hadn’t done the Cedi redenomination of 2007, we would have been exchanging 100,000 Cedis now for the US Dollar.

“That is how far our currency now has lost value, which means that we have not been very good with managing our own affairs, we have met the expectations of our founding fathers,” he added.

The 2007 cedi redenomination kick-started on July 1, 2007, by the Bank of Ghana with the Cedi (¢), redenominated to the Ghana Cedi (GH¢), such that ten thousand Cedis will be equivalent to one Ghana Cedi.

“Two of the reasons given by the Central Bank for the redenomination are the increasing difficulty in maintaining accounting and statistical records; and problems with accounting and data processing software,” a PwC report noted.

Galloping inflation last pegged at over 31%, and a depreciating Cedi has become two main pointers of the economic crisis that has triggered the general rise in the cost of living.

Government has since turned to the International Monetary Fund, IMF, for an economic recovery programme to support the economy.

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