Head of Research of Databank Ms. Doris Ahiati, has described the weakening value of the cedi against major trading currencies as resembling the pulse of a fainting patient.
Ms Ahiati said the cedi’s weakness against the major trading currencies is a major problem for businesses in the country.
“I think at this point in time if we compare the pulse of the cedi’s value to the pulse of a patient, it would be that of a patient who is fainting”, she said
The British Pound and Euro hit seven and five cedis respectively last week at some forex bureaus across the country.
The British pound started the year (2015) at five cedis across forex bureaus in the country while the Euro started at 3 cedis, 90 pesewas.
The Pound and Euro are not the only major foreign currencies thrashing the cedi on the forex market.
The dollar last month hit four cedis after rallying between 3 cedis 80 and 3 cedi 90 pesewas for weeks and is now being sold at 4 cedis 45 pesewas in forex bureaus.
Ms Doris Ahiati pointed out that the problem is not with the currency but the management of the nation’s economy.
“This is an economy where there is too much political commentary on critical economic issues, where inflation is not stable…our budget deficit are in the double digits, an economy where our total debt portfolio is high,” she noted.
According to her, an economy with these negative factors is bound to have a telling effect on the currency.
She believes when these negative factors are corrected, “we will not have a cedi that is depreciating.”
He counseled the government to all it can to bring the country back on track with prudent economic policies.
She said she is optimistic that the cedis will see some improvement in the last quarter of this year but says that will not solve the problem.
“If government does not discipline itself we will see same in 2016”, she said.
Source: Myjoyonline