Think tanks back prediction of unprecedented cedi depreciation this year
The Centre for Policy Analysis and financial services provider, Gold Coast securities are warning that an imminent unprecedented fall of the cedi this year that will trigger astronomical increases in prices of goods.
The two institutions confirmed a report by international business news outlet, Bloomberg, which predicted the cedi will this year fall to its lowest level yet against the US dollar since its redenomination in 2007.
The report noted that the cedi will depreciate to as low as 2 cedis to a dollar by the end of 2013.
Currency Analyst with Gold Coast Securities, Kofi Ampaw said ‘we were expecting that at least the cedi will hold on to its value loss against the dollar this year but unfortunately the trend has continued’.
‘And it is very worryingthe country as at the moment is importing a lot more and exporting less so it is going to happen.’
Dr. Joe Abbey, the Executive Director of the Centre for Policy Analysis, also stated that the predicted fall in the cedi will have a devastating effect on the economy.
‘We are not growing this economy and we are spending too much time doing politics’
He warned that ‘if we go on like this, it could be worse than your two cedis to the dollar.’