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FLASHBACK: Weak fundamentals not cause of Cedi fall – Prof. Bokpin

Godfred Bokpin121 Professor Godfred Bokpin is an economist

Tue, 12 Jul 2022 Source: www.ghanaweb.com

Economist Professor Godfred Alufar Bokpin stated that the cedi's depreciation was not being caused by weak fundamentals of the economy as was being perpetuated by politicians.

According to him, the weakening of the currency was due to external shocks.

He further intimated that Ghana was not the only country facing challenges with its currency.

“What we are seeing right now is more externally driven with prospects of attractive securities in the US and the merging market, and the fact that growth in the US is picking up and consolidating, and that is offering hope for investors.”

Read the full story originally published on July 11,2018 by 3news

The Head of the Department of Finance at the University of Ghana Business School, Professor Godfred Bokpin, has said weak fundamentals cannot be the cause for the depreciating cedi but rather external shocks.

Speaking to TV3’S Nuong Faalong on Tuesday, Professor Godfred Bokpin explained that the fundamentals of the economy have been looking positive and therefore the loss in value of the Cedi cannot be blamed on weak economic fundamentals.

He said the present state of the Cedi is a result of external forces and its inability to withstand unexpected market shocks, adding that other countries have suffered the same fate as a result of market forces.

“What we are seeing right now is more externally driven with prospects of attractive securities in the US and the merging market, and the fact that growth in the US is picking up and consolidating, and that is offering hope for investors.”

The Ghana cedi today is changing from GH¢4.82 to $1 after hitting GH¢4.85 last week.

Politicians and economists have not been able to agree on the true cause of the falling value of the Cedi.

Professor Bokpin defended probable decisions of resorting to foreign reserves to shore up the value of the Cedi.

He further lauded the efforts of the Central Bank but cautioned politicians against politicizing the Cedi.

Professor Bokpin called on domestic investors to avoid panic decisions as they could further jeopardize the local currency.

Source: www.ghanaweb.com
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