Stanchart’s Head of Research for Africa, Razia Khan says the current state of affairs of the Eurozone debt crisis makes it more crucial for especially monetary policy to be tightened in the country. EU leaders are looking to solve the crisis with a 3-pronged approach including a 50 percent write-off of Greece’s debt, recapitalization of EU banks and beefing up the EU rescue fund. But analysts have cast doubt about the feasibility of the plan describing the measures as vague and a mere relief-rally. Razia Khan told Joy Business, even though Ghana like other Rapid Growth Markets is relatively well placed to weather the global economic storm, the imminent risks posed to the country’s exchange rate must be taken seriously. “It’s very difficult to predict with the level of global uncertainty; one thing that we do know and we’ve seen it everywhere else in Africa is that exchange rates always overshoot fundamentals so you can never tell if you move up in Dollar – Cedi from 150 to 160 it’s going to stop at 160 or go up all the way to 170 of 180 because of the tendency for exchange rate to overshoot,” she stated. Meanwhile, the Eurozone crisis has already taken a negative toll on trading activity on the Ghana Stock Exchange at least for the third quarter of this year. This could however only be seen as a reflection of trends in Asian and US markets which have also been plummeting due to the crisis. In Ghana, the strong financial results posted by most of the listed companies during the period under review coupled with relative macroeconomic stability, could however not translate into improved share-price performance.