Too early to jubilate over cedi’s appreciation against the dollar - Economist

Chartered Economist Emmanuel Amoah Darkwa says it is too early for Ghanaians to be jubilating, over the recent appreciation of the Ghana cedi against the dollar and other major currencies.

The local currency is currently selling for just under 12 to one US dollar and the rate may even improve before the end of the day.

The cedi gained ground against the pound and the euro. It is currently trading at 15.10 and 12.50 to the other two major foreign currencies.

Several individuals, including appointees of government, are jubilating over the trend.

But Mr. Amoah Darkwa says we need not rush in jubilating since the trend could soon change.

The Chartered Economist explained on Frontline on Rainbow Radio 87.5Fm that the cedi would only be stable if the government implemented measures such as reducing the excessive importation of basic commodities.

”It is too early to jubilate. We have to wait and monitor. These are factors that are sometimes external.”

He said “the demand for the dollar has reduced whereas crude oil has is reducing and these are some the external factors but domestically, the Bank of Ghana introduced a policy that it would not support the importation of rice and other commodities we can produce in Ghana. In addition, the demand for the dollar to import has decreased. The regulatory side against the black market is on track.”