Prof Peter Quartey, the director of the Institute of Statistical, Social and Economic Research (ISSER) has attributed the recent sharp depreciation of the Ghana Cedi mainly to unnecessary speculation on the market.
Bloomberg last month rated the Cedi as the worst-performing currency among Africa’s top currencies. It pegged the depreciation of the Cedi to the Dollar at 8.86% between 1 January 2022 and 25 February 2022.
Talking to Kofi Abotsi on TownHall Talk on Asaase Radio 99.5 FM, Quartey said: “Unfortunately for us the downgrade by Fitch has also affected the exchange rate to the extent that investors, some are leaving the market… and that is bringing pressure.”
“But one thing I find very striking, and I think it has to do with us Ghanaians, is the issue of speculation. There are a lot of speculative activities. Once we start making noise about the exchange rate, it gets to a point you don’t even hear the media talk about the exchange rate, then it gets to a time they talk about it every second, every minute.
“Once I hear that really, then quickly whatever I have let me go and exchange and it is really happening, those who do not even intend to import now might import soon. Of course, they are taking rationale decision, so that is not helping us,” Quartey added.
The ISSER boss wants the government to urgently tackle the speculative aspects of the local currency to help reverse the trend.
Watch the full show in the attached video below:
Fred Dzakpata
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