Cedi could be able to enjoy more, says Professor Peter Quartey

 


Prof. Peter Quartey, an economist, believes that the Ghana cedi would continue to strengthen versus the main international currencies.

Prof. Quartey believes that this is quite likely as a result of government action, which has led to the current stability of the Cedi.

Given the measures put in place by the government to address the devaluation of the Cedi and growing inflation, he forecasts that the economy will soon see a favorable outlook.


On Eyewitness News, he said, "I see some self-correction happening."

The Ghana Cedi has been under pressure this year, however recent months have seen some cumulative gains due to the dollar's current average cost of roughly GH11 being exchanged for the Cedi.

Comparing the Cedi to other major currencies, its value fell by more than 50%, making it the worst-performing currency internationally.

This compelled the government and the Central Bank to start keeping an eye on the growth of inflation while taking the necessary action to control the price pressures.

These were among the actions taken to control inflationary pressures that were clear in the altered monetary policy.


The pressure on the exchange rate and the prohibition on the supply of foreign currency for the purchase of specific goods are both being helped by the Bank of Ghana's Monetary Policy and the supply of dollars to the OMCs. Therefore, a number of factors work together to explain the relative stability of the change rate.

The Director of the Institute of Statistical, Social, and Economic Research (ISSER), Prof. Quartey, hinted that the sum of these actions, together with the government's agreement with the IMF, is what accounts for the relative appreciation of the local currency.


"The pace of decline we saw was abnormal. That had been a long time since we had seen it. People had to exchange all of their Cedis they owned into dollars in order to use them as a store of value due to the local and current economies losing credibility. However, the IMF program and the debt swap itself are giving the market encouraging signals.

"I am really sure and optimistic that [things will improve], especially with the IMF accord that will bring in $3 billion, then the other bilateral donors will offer us loans at very favorable rates, adding additional money into the system. He continued, "I also anticipate a decrease in the inflation rate.

ABDUL-WAHAB

VOV stands for Voice Of Volta, we are the mouthpiece for the second-largest local dialect spoken in Ghana. But our programing is 70% English and we are heavy on sports and entertainment, we provide good music, credible and reliable news.

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