Business News of Tuesday, 19 June 2018
Communications Expert at the Energy Ministry, Nana Damoah, has said the Akufo-Addo administration has made remarkable strides in the Cedi dollar depreciation as against previous regime from 14.5% to 4.9%.
According to him, the Akufo-Addo administration stood tall compared to the past governments vis a vis the stabilization of the local currency as against it major trading currencies in the the first year of his tenure.
“Under Rawlings, the cedi-dollar depreciation was 35%, under the Kufour’s government, it was 5%. With the Mahama’s government, it was 14.5% and now it has decreased to 4.9% under the Akufo-Addo’s government,” Nana Damoah told host Kwaku Owusu Adjei on Anopa kasapa 102.5 FM.
His comment comes on the heels of the cedi debate between Vice President Dr Mahamudu Bawumia and former President John Mahama after the latter in a recent tweet pooh-poohed the ruling government and Dr. Bawumia in what he (Mr. Mahama) described as a depreciating currency caused by weak economic fundamentals.
However, in a sharp response on his Facebook wall the Economist and former Deputy Governor of the Bank of Ghana, Dr. Bawumia indicated that such uninformed comments by Mr. Mahama only exposed his lack of understanding on key aspects of the economy.
“It has been brought to my attention that former President Mahama has recently been talking about exchange rate depreciation. The former President’s comments once again, sadly demonstrate his lack of understanding on key aspects of our economy” – Dr. Bawumia observed.
Speaking on the issue further on Kasapa FM, Nana Damoah said the current NPP regime has taken good steps in ensuring the fundamentals of the economy are solid.
The governing New patriotic Party(NPP) Communicator made reference to the entire tax structure that has been changed,which has seen the removal of some nuisance taxes as a resolve of creating space for Ghanaians.
The excess taxes that were placed on petroleum, according to Nana Damoah has been removed. Also the special petroleum tax has been standardized from 17.5% to 15% and it has now been changed to 0.49 pesewas per liter even though they are not completely done with it, it has reduced some of the cost incurred.
The Ghana Cedi neared a four percent depreciation to the US Dollar on Tuesday as demand by importers continued to rise.
The local currency declined in value by 0.4 to the American currency last week.
The Ghana Cedi has been projected to depreciate by about 5 percent this year. This means it will trade at two cedis to a dollar by the end of December.
Analysts expect the Central Bank to reinforce the exchange rate policy and liquidity management efforts to the local currency.