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Business News of Tuesday, 25 August 2020


Fundamentals of Ghana’s economy now strong and resilient – Bawumia

Vice President, Dr. Mahamudu Bawumia play videoVice President, Dr. Mahamudu Bawumia

Vice President, Dr Bawumia has declared that the fundamentals of Ghana’s economy are now strong and resilient as compared to what was inherited.

This comes on the back a famous quote made by then vice-presidential candidate, Dr Bawumia at a public lecture in the build up to the 2016 elections.

“If the fundamentals are weak, the exchange rate will expose you,” he earlier said amid the rapid decline of the Ghana cedi to the major trading currencies.

Responding to a question whether the fundamental of the economy were now strong, Dr Bawumia on Accra based radio station Peace FM said; “The fundamentals are now strong and the depreciation is around 2%. Since 1992 the cedi has not been this strong despite the devastating effect of COVID-19 globally.”

According to him, Ghana’s major currency, the cedi is within a range of a strong fundamentals as it trades GH¢5.7 against the US Dollar.

Meanwhile, some economists have projected that they do not expect the cedi to significantly depreciate against major trading currencies at least for the remainder of 2020.

The cedi since January up until July of this year has witnessed a 2.53 percent depreciation against the US dollar.

The local currency in 2019 however witnessed a depreciation against all the three currencies; the US dollar, the Euro and the British Pound.

For now, economists says the cedi has regained renewed strength and is likely to chalk some gains.