An Associate Professor of Economics at the University of Ghana, Prof Ebo Tuckson, has warned against unnecessary hoarding of the US dollar in anticipation of a hike in the exchange rate with the cedi.

Speaking on the Super Morning Show, on Tuesday, the Professor stated that the act is a major contributing factor to the high depreciation rate of the Ghana cedi.

"There is a lot of unusual buying of dollars; people often buy the dollar with the expectation that they're going to sell at a higher rate when the cedi depreciates, and are all trying to get the dollar cheaper than the 'so-called' expected worsening of the cedi, but that's not going to happen," he said, adding that this will not help in ensuring the stability of the cedi against the dollar.

His comments were part of discussions on the show that centered on the depreciation of the Ghana cedi. It comes days after Joy Business checks at some forex bureaus and commercial banks revealed that a dollar is being sold at a little above GH¢7.

The volatility of the exchange rate between the cedi and the major foreign currencies has been largely attributed to the uncertainty about Ghana’s fiscal outlook, despite interventions by the Bank of Ghana.

But in an interview, the Professor urged Ghanaians not to panic over the rate of depreciation, as it will soon bounce back.

He explained that the development is due to the fact that "most FDIs with those generous investment packages normally repatriate their profits after a year.”

He, however, entreated the government to put in place measures to ensure less hoarding of the dollar, especially by importers.

He stated that importers often lament over the fact that they have to pay more for their goods due to the unstable exchange rates, hence their decision to buy the dollars ahead of time in anticipation of any future changes.

"Why does Ghana as a country collect revenue at our ports and the exchange rate that they use keeps changing? Why can't we ensure that our Importers get one exchange rate which will be used within a period but it keeps changing over time?

"Importers are saying that by the time they import, the exchange rate will stand at a certain point but by the time they come to clear their goods from the port, the exchange rate has depreciated and they end up having to look for more money. So what they often do is that before the goods come, they begin to buy the dollar," he said.

"If the government can assure them [importers] within a period [3 months] this is the exchange rate they are going to, I believe things will significantly change," he said.