A lecturer in the Department of Finance at the University of Ghana Business School, Dr. Benjamin Amoah asserts that the constant depreciation of the cedi stems from weaknesses in the economy's fundamentals.
According to him, certain factors including inflation, unemployment, and interest rates have risen, and the government inability to control them has resulted in the free fall.
Speaking on Joy FM’s Top Story on May 14, he said “The fundamentals are definitely weak. We should not play jokes about it. The truth is that the fundamentals are very weak. What is the fundamental here? What is the inflation rate as we speak now and what is has been the inflation rate over time, very high. What is interest rate, that is the fundamental factor, it is very high."
“What is unemployment rate now? Unemployment rate is very high. What is our balance of payment position, it is very high and these are the very fundamentals that is used in accessing the exchange rate.”
He explained that addressing just one of the indicators does not resolve the depreciation of the cedi; rather, it requires effective management of each of these factors.
The cedi was trading against the dollar at GH₵ 11.98 but now hovering around GH₵ 14.80 at the forex bureaus resulting in a depreciation rate of close to 20% since the beginning of the year
Latest Stories
-
Minister orders Engineers & Planners, Azumah Resources, to quash gold mine feud within 7 days
44 minutes -
Economic Governance Platform launches report on Sustainable Debt Management in Ghana
50 minutes -
USAPEEC concludes 7th national training programme and cooking competition
51 minutes -
DMV Party In The Park 2025 postponed due to permit delays
59 minutes -
Galamsey: Prestea Blue Water Guards destroy 8 chanfang machines, seize 8 pumping machines
60 minutes -
10th Ghana Amateur Ladies Open tees off at Centre of the World Golf Club in Tema
1 hour -
Prof. Peter Quartey cautions Ghanaian youth against calls for military rule
2 hours -
Nine prison inmates receive scholarships to Jackson University College
2 hours -
Savings and loans sector records 27% growth in lending amidst low NPL rate
2 hours -
Devastating Ahodwo fire displaces over 200 slum dwellers
2 hours -
Government recapitalizes NIB with GH₵1.4bn; ADB, CBG set for 2026
2 hours -
Ghana’s Chef Abbys makes TIME’s 100 Most Influential Creators list
2 hours -
Small Scale Miners Association Chair arrested for confronting anti-galamsey taskforce in Desiri Forest
2 hours -
Stakeholders demand transparent laws to curb corruption and ease business burden
2 hours -
Six arrested over alleged ritual murder at Mafi Adidome
2 hours