Source: Ghana|Myjoyonline.com|Nathan Gadugah
Date: 03-02-2014 Time: 09:02:57:pm
A currency Analyst with the Gold Coast Securities, Kofi Ampah, is blaming corruption, sabotage and speculation for the fall of Ghana’s local currency, the cedi.
He said countries noted or perceived to be corrupt have problems with their currencies.
The cedi has lost significant value against the major currencies in the world, a situation that has business men, traders, students and pastors all complaining.
The US dollar, which sold at Ghc2.20 on the local foreign exchange market before Christmas last year, now sells at Ghc2.60. The British pound, which sold at Ghc3 now sells at Ghc4.20. The euro and CFA are also selling at Ghc3.50 and Ghc4.80 respectively.
The situation has become so alarming that the General Overseer of the Christian Action Faith Ministries (CAFM) Archbishop Duncan Williams led his congregation last Sunday in a prophetic attempt at redeeming the cedi from its sorry state.
He “commanded the cedi to rise” and prayed for God to give officials of the Bank of Ghana and the Finance Minister the best ideas to better manage the economy.
Archbishop Duncan Williams has been hugely criticised and in some cases mocked by some individuals including former head of Monitoring and Evaluation the Presidency, Dr Tony Aidoo.
But speaking to Joy News’ Dzifa Bampoh, the currency analyst Kofi Ampah said “what we are experiencing with the cedi is speculation.”
He said when people lack vital information about the economy, they begin to “panic” and as a result take desperate measures including buying of dollars.
On corruption Kofi Ampah stated that Greece, Turkey, South Africa, countries perceived to be corrupt all have challenges with their local currencies and Ghana is no exception.
He also blamed saboteurs in the economy for the free fall of the cedi.
“The issue of currency saboteurs [exists] and those people are within the economy and we should watch them,” he warned.
The Currency Analyst called for a better foreign exchange policy by the government and the Bank of Ghana to regulate the activities in the financial market and also encourage foreign direct investment.
He also charged the economic managers to better handle the international reserves, adding “if the reserves erode we are in big trouble.”