Vice president of Ghana, Dr. Mahamudu Bawunia has claimed that following the traits of the previous Mahama led administration would have further depreciated the value of the Cedis as compared to the American dollar.
In an interview with Kwame Sefa Katia on Peace FM today, Dr. Bawumia highlighted that the currency could have performed better if the NDC administration had maintained the currency at 1 Cedis to 1 dollar.
“The way the currency was going under the NDC administration, the currency was 1 Ghana Cedis to 1 dollar almost at that time but they left office with 4 Ghana Cedis to 1 dollar. So it was a quadrupling of the nominal rates of the Cedis and if it had followed on that trajectory, it would have been 16 Ghana Cedis to 1 dollar,” he asserted.
He added that the Akufo-Addo lead administration had reduced depreciation of the Cedis by 50% since assumption into office in 2017.
“Before we assumed office in 2017, the cedis was depreciating at 18 per cent annually on average. But during our tenure from 2017 to 2019, it was 8.7 per cent on average. So it is 18 per cent versus 8 per cent. So we have reduced by 50 per cent the rate of depreciation of the currency.”
Cedis depreciation
Data from the Bank of Ghana interbank exchange market released in June 2019 suggested that the Cedis depreciated by 8.2% by June 29, 2019.
It was termed as the worst depreciation rate the currency had seen since the 26.2% depreciation rate in 2015.
In 2015 1 Cedis matched to 3.81 US dollars.
In 2016 however, 1 Cedis matched to 4.17 dollars.
The Cedis currently stands at 5.77 against the US dollar.
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