A very strong cedi hurts exports, tourism – Dr. Assibey-Yeboah

The Chairman of Parliament’s Finance Committee, Dr. Mark Assibey-Yeboah, has underscored the need for the country’s currency not to go beyond a certain threshold, maintaining that once that happens it affects exports and tourism earnings.

The Ghanaian cedi has persistently depreciated against the major foreign currencies especially the dollar in recent years. However, the cedi has appreciated against the major currencies in 2020 and this has raised concerns over its sustainability and potential volatility.

But according to Dr.Assibey-Yeboah, who is also the Member of Parliament for New Juaben South constituency, Ghanaians should be concerned about the appreciation of the currency as a very strong cedi hurts exports, tourism and the economy as a whole.

“We get more cedis when our export earnings come in and already we have programmed in our budget that we will get so much, so once the currency is getting stronger and stronger, it gets to a certain threshold it is worrying.

So if right now the cedi dips under five cedis per dollar, the Bank of Ghana would be concerned. They would reduce the supply of dollars to push the price or exchange rate back up, so a very strong currency in and of itself is not a good thing. It hurts exports, affects tourism” he on Class91.3FM’

Additionally, he explained “all the foreigners coming here, if your currency is weak, they will rather come here than go elsewhere on vacation”.