‘We all know maths; Gh¢4.20-Gh¢5 is 19% depreciation, not 6%’- Ken Agyapong to gov't

“The thing was 4.20 (cedis). Now, in 18 months since we came, it is 5 cedis. At some places, it is even ¢5.20! What is he (Dr Boako) talking about? If you look well, 80 pesewas has come to join it. Simple mathematics is 80p over [divided by] Gh¢4.20p times [multiplied by] 100 (%), it gives you 19%! So how can Boako say it is 6%?”

The above MyNewsGH.com can report were some of the words of Kennedy Agyapong, Member of Parliament for Assin Central, who after blaming the depreciation of the cedi on ramifications of poor policy direction under the John Mahama-led administration, is now accusing the current Akufo-Addo government of lying to Ghanaians about the actual percentage of the depreciation they are supervising.

Last week, revered Economist and spokesperson of Vice President Dr Mahamudu Bawumia Dr Gideon Boako, speaking on our sister media platform on CitiTV Point of View, said the rate of the cedi’s depreciation is much better as a result of government actions, compared to the previous administration.

“What is important is that, whatever the depreciation was at the time is not the same as today. That is why if someone has been able to reduce the rate of depreciation from a point of 31 per cent to 6 per cent, you do not just be ungrateful to that person and say he has not done well,” he said.

“It means that given the chance, that person has what it takes to take you to a point where you have zero depreciation and you can think of how to grow up. That is the most important. If you do not situate the argument within that context, you will just be comparing the nominal figures,” said Dr. Boako.

“It is important to also note that in so far as we don’t run a fixed exchange rate regime, depreciation is something that will be difficult to say you won’t see it at all. You try as much as possible to contain it and make sure you appreciate. But given the structure of our economy right from Guggisberg’s time to Nkrumah till today, the structure of the economy is such that we are mostly net importers, and so the trade accounts issued will affect our local currency at all times. We also have huge exposures to foreign investors in the country – those who are doing retail businesses and the likes so they repatriate money outside and all of these will have effect on us” he added.

But NPP MP for Assin has his own theory. According to him, the cedi is falling because people have lost confidence in the banking system and have ended up trading dollars and it is blameable on the erstwhile John Mahama administration.

But Mr Agyapong said his only worry is that the Akufo-Addo government must stop lying about the actual percentage of depreciation as it is common knowledge and anyone can do the maths for him or herself.

Kennedy Agyapong’s own math in the studios of Net2 TV’s The Dialogue Wednesday monitored by MyNewsGh.com arrived at a figure of 19% depreciation.

“If we are going to compare performance then it is wrong. It is not going to help… in fact, yesterday I was saying that on Adom TV. It was not good for Boako to come out.” Kennedy Agyapong said.

“When we took over power, it was 4.20 cedis to one dollar, today the cedi has depreciated by 80 pesewas, now at 5 cedis” He explained.

Told by the host about a report by Chronicle newspaper that the figure was not 5 cedis but rather 4.75 cedis, Kennedy Agyapong got angry.

“Please please, you are not the one even to show me. Chronicle should tell me what business they are doing to talk like that.” He fired.

“They should show me where they found cedi to dollar at 4.75 and I will buy 10million dollars. I don’t lie. I am suffering. I am NPP but I speak the truth. I said today, they should show me where they bought it for 4.75 and I will buy 10million dollars now-now.” He challenged.

“We are trying to talk about it so that we can solve it. Let’s speak the truth. The thing was 4.20 now and in 18 months since we came, it is 5 cedis. At some places, it is even ¢5.20! What is he talking about? If you look well, 80 pesewas have come to join it. Simple mathematics is 80p over [divided by] Gh¢4.20p times [multiplied by] 100 (%), it gives you 19%! So how can Boako say it is 6%?”