“The cedi appreciating is artificial…your economic growth, productivity, improvement in merchandise trade which are the fundamental variables must increase…but all these things have not improved. Productivity is on a serious steep decline, we continue to import more than we export…”
Atik Mohammed, a policy analyst of the People’s National Convention (PNC) made this comment in reaction to the current state of the Ghanaian cedi.
The cedi for about a month now has been appreciating against the other foreign currencies. The cedi remain stable to the Dollar but appreciated at GHC1.76 pesewas against the Euro.
A lot of businesses have welcomed this news with joy, however, Atik has asked them not to rejoice because the cedi will depreciate again by December.
He attributed the current appreciation of the cedi to speculation and some return of confidence in the banking system and advised government to pay attention to what he called the fundamental variables (economic growth, productivity, improvement in merchandise trade) or else the cedi will get worst.
“By December the currency will start losing value again because the fundamental variables for the cedi to be stable are not there; none of those variables have had any improvement. And that is not a solid foundation for the cedi to continue to stabilize; I don’t think it will be sustainable and so by December, if those various variables are not improved, we will come back to the same worst situation” he predicted contributing to a panel discussion on PEACE FM’s morning show ‘Kokrokoo’.