Business News of 2014-07-31

Illicit transfers not cause of depreciation – Analyst

A banking analyst, Nana Otuo Acheampong says that the alleged transfer of some $128 million by KESSBEN FM boss to suspicious addresses and others could not have contributed to the depreciation of the cedi.

Some have argued that the said transfers could be one of the causes for the cedi depreciating about 29 percent this year.

But speaking to Citi Business News, Nana Otuo Acheampong, Banking analyst with the Osei Tutu II Centre for Executive Education & Research, indicated that the major cause of the cedi depreciating has to do with government’s overspending.

He expressed doubt that such transactions can contribute largely to the depreciation of the cedi because according to him, “the depreciation of the cedi is due to the imbalance between the income and expenditure patterns as a government or a nation so we are currently living by overdraft which is a very expensive source of fund.”

He said until government is able to control its expenditure, we cannot address the issue of the depreciation of the Ghana cedi.

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