Continue prudent policies to keep cedi stable – SG Bank Deputy MD to Govt, BoG

Deputy Managing Director of Société Générale Bank Ghana, Ernest Kuetche, has advised government to continue what he calls prudent policies to ensure the cedi’s performance is sustained even beyond the election year.

According to him, further policies must be set in place to continue to keep the local currency stable against major trading currencies such as the US dollar.

The local currency has witnessed a decline against major trading currencies but has currently appreciated about four percent in value against the dollar since the start of this year.

Mr. Ernest Kuetche speaking to reporters in Accra said: “I think the government has already taken good measures on this. I think it is the reason why we believe it has helped stabilize the cedi. In 2019, the depreciation was quite significant. It was quite high. In the first two months of 2020, we have seen some appreciation of the cedi.”

“This is overall a good stabilization. The key concern is the fact that always in election years there is a bit of uncertainty. But from what we have seen in the first two months of the year, it doesn’t seem to be the case. If the government continues in the same direction as the Bank of Ghana, I have no doubt things will continue to have a positive outlook,” he added.

Meanwhile, in February this year, the cedi ended the month with an appreciation of about 5.75 percent to the US dollar on the interbank market. This is unlike in previous years where it largely depreciated and often times witnessed a rapid fall.

The cedi currently has also appreciated by 4.52 percent at forex bureaus.