Business News of Friday, 15 March 2019
The Ghanaian business community will have to brace itself for tough times as the cedi is expected to depreciate further against the dollar before the middle of 2019 according to ranking member of finance, Isaac Adongo.
In an interview he granted Metro TV’s Paul Adom Otchere monitored by MyNewsGh.com, he observed that nothing can be done about the predicament of the cedi against the dollar and other major currencies worldwide.
UK Economist, Charlie Robertson this week described the cedi as the cheapest in Africa having depreciated by 8.6 percent this year alone.
In a tweet he said “#Ghana’s currency in the last few minutes has just become the cheapest in Africa – (at GHS5.745/$) – based on our real effective exchange rate model. Despite a current account covered by FDI and double-digit interest rates #cedi”
Finance Minister, Ken Ofori-Atta in a subtle response also gave the assurance that the cedi will be fine in a fortnight hinting that government expects some fresh injection of capital such as the $750 million Standard Bank bridge facility to deal with the challenges the cedi is currently facing.
“Foreign exchange is a price which means it is demand and supply and what I am saying is that the resources that we are going after; $300 million, $600 million and another $750 million and 3 billion and [I think] we should be okay. And all of this should happen within the next two or so weeks.” He assured.
But the Member of Parliament for Bolgatanga Central who is doubtful about measures being put in place by the Finance Minister to curb the cedi from further depreciation said “the cedi will cross 6(GH¢6 to a dollar) before half year. What can happen? They can’t borrow three billion long term to come and solve the problem…now they are going short term and thinking…who has ever survived on painkillers? But that is where we are” he jabbed.