Ghana’s import & export structure part of Cedi’s woes – Ken Kuranchie

The Managing Editor of Daily Searchlight Newspaper, Ken Kuranchie says the export and import structure of the country’s economy is the cause of fast depreciation of the cedi against major currencies. He intimated that answers to the devaluation of the cedi is at the department of economics at the University of Ghana. “There is a book there called Economy of Ghana 101. Every politician should read it. We should go to the people at the economic department of the University of Ghana, get the book and read it,” the managing Editor advised. He stressed the challenges with the cedi are embedded in the book adding that the issues dealt with in the book have to do with the country’s import and export structure of the economy. Meanwhile, he said he believes that the cedi is heading towards its natural place. “You know every animal has a habitat and the cedi is heading towards its natural habitat. When Kwame Nkrumah gave us the cedi its value was comparable to the pound sterling. But by the time we got towards the later part of Rawlings tenure one dollar was 10,000 cedis” Mr. Kuranchie told Starr News. According to him, the situation then informed former President Kuffuor’s decision to introduce what is called the redenomination. Mr. Kuranchie, however, added that the redenomination about 16 years ago by former President John Agyakum Kuffuor was not helpful and “his government could not explain why cedi was equivalent to dollar after the redenomination.” “So until we sit and answer that question and address it and begin to passionately deal with that problem. The cedi will continue to head to its natural place and we are heading to a very deep and dark place. The Minister of Finance, Ken Ofori-Atta has said Ghanaians should not panic over the high depreciation of the Cedi. The woes of the Ghana Cedi continue to deepen as the currency has depreciated and reaching GHC17.5 to 1$. But, Ken Ofori Atta believes the economy will bounce back soon and the Cedi stabilized following measures being put in place by the government. “…It is a bit perplexing but as you know, typically we go to market at the beginning of the year and get our 2 billion, this we were not able to do. We were able to get our 750 from AfroExim and in the summer – August or so things stabilized a bit. Then we moved on traditionally as we do with the ASL (Annual Syndicated Loan) of COCOBOD and that came in very strongly. So it’s a bit perplexing to see where it’s going.” “Of course, typically in October, people are importing for Christmas, and maybe there’s a rush for that. But my expectation is that once we also conclude with the Fund that will lead to the Fund’s disbursement early next year. With the support we are getting from countries like Germany, France etcetera, we are confident that we’ll get the resources needed. So we really will want people not to panic or be rushing for that pressure on the currency. I think it is unnecessary and we are in good shape,” Mr Ofori Atta said in an interview in Washington.

The Managing Editor of Daily Searchlight Newspaper, Ken Kuranchie says the export and import structure of the country’s economy is the cause of fast depreciation of the cedi against major currencies. He intimated that answers to the devaluation of the cedi is at the department of economics at the University of Ghana. “There is a book there called Economy of Ghana 101. Every politician should read it. We should go to the people at the economic department of the University of Ghana, get the book and read it,” the managing Editor advised. He stressed the challenges with the cedi are embedded in the book adding that the issues dealt with in the book have to do with the country’s import and export structure of the economy. Meanwhile, he said he believes that the cedi is heading towards its natural place. “You know every animal has a habitat and the cedi is heading towards its natural habitat. When Kwame Nkrumah gave us the cedi its value was comparable to the pound sterling. But by the time we got towards the later part of Rawlings tenure one dollar was 10,000 cedis” Mr. Kuranchie told Starr News. According to him, the situation then informed former President Kuffuor’s decision to introduce what is called the redenomination. Mr. Kuranchie, however, added that the redenomination about 16 years ago by former President John Agyakum Kuffuor was not helpful and “his government could not explain why cedi was equivalent to dollar after the redenomination.” “So until we sit and answer that question and address it and begin to passionately deal with that problem. The cedi will continue to head to its natural place and we are heading to a very deep and dark place. The Minister of Finance, Ken Ofori-Atta has said Ghanaians should not panic over the high depreciation of the Cedi. The woes of the Ghana Cedi continue to deepen as the currency has depreciated and reaching GHC17.5 to 1$. But, Ken Ofori Atta believes the economy will bounce back soon and the Cedi stabilized following measures being put in place by the government. “…It is a bit perplexing but as you know, typically we go to market at the beginning of the year and get our 2 billion, this we were not able to do. We were able to get our 750 from AfroExim and in the summer – August or so things stabilized a bit. Then we moved on traditionally as we do with the ASL (Annual Syndicated Loan) of COCOBOD and that came in very strongly. So it’s a bit perplexing to see where it’s going.” “Of course, typically in October, people are importing for Christmas, and maybe there’s a rush for that. But my expectation is that once we also conclude with the Fund that will lead to the Fund’s disbursement early next year. With the support we are getting from countries like Germany, France etcetera, we are confident that we’ll get the resources needed. So we really will want people not to panic or be rushing for that pressure on the currency. I think it is unnecessary and we are in good shape,” Mr Ofori Atta said in an interview in Washington.