Cedi appreciation would be sustained – Gov’t assures

Government has indicated that it would put in place measures to ensure that the marginal appreciation of the cedi is sustained.

The Cedi in the last few months has seen a 40% depreciation against the dollar and other currencies. But the Central Bank’s review of its directives on the use of foreign exchange (forex) to save the free fall of the Cedi is having a positive impact on the local currency as the Ghana cedi continues to gain strength against major foreign currencies.

The latest euro bond and inflows from the cocoa syndicated loan have also impacted on the cedi, making it regain its lost glory.

Checks on inter-bank rates in Accra established that on the average, one dollar was bought at Ghc3.1, and sold for Ghc3.45; One pound was bought at Ghc5.2, and sold for Ghc5.6, while an Euro was also bought at Ghc4.1, and sold for Ghc4.4.

Deputy Minister of Finance, Mrs. Mona Quartey told Citi FM government “wants to sustain this stability and even look forward to more appreciation as we end all this speculative buying…and that we have the confidence in the market”.

Quartey added it will take some time for traders to feel the impact of the appreciation of the Cedi since goods have already been bought and needs to be sold before prices reduce to match the fall of the cedi.

“In economics and even in the market and the real world whenever something happens, it takes some time before the effect is felt so there is a timeline…there will be a time lag before the effect will show.”