Business News of Wednesday, 24 October 2018
Governor of the Bank of Ghana, Ernest Addison has asserted that the Ghana cedi would have experienced a persistent appreciation against the US dollar if not for the challenges facing the emerging markets.
Speaking on Bloomberg TV show ‘Bloomberg Markets: European Open’, Dr Ernest Addison stated that the cedi appreciated against the dollar within the first five months of 2018, till the emerging market was hit with increased U.S interest rates. This resulted in the depreciation of the currencies of such markets, including Ghana.
“Throughout last year, the currency was relatively stable and in the first five months of this year, it actually appreciated against the US dollar until May when the emerging market problem started and then we started seeing additional currency depreciation, losing almost 7% by September,” Dr. Ernest Addison said
He added that the Ghanaian economy has experienced “a significant turnaround in the macroeconomic fundamentals, fiscal consolidation, a fairly robust balance of payment, development.”
According to Dr. Addision, “all of that improvement reflected somewhat in the behaviour of the cedi” in 2017 and the beginning of 2018.
The Ghana cedi in recent times depreciated marginally against major international currencies, especially the US dollar causing fears within the business community.
The Bank of Ghana introduced measures at the beginning of 2018, to halt the depreciating of the Cedi, among which included the withdrawal of both Foreign Currency and Foreign Exchange Accounts in Cedis, at the existing exchange rate over the counter, except for travelling purposes.