Bawumia must revisit pre-2017 cedi restoration notes – Dr. Asiedu Sarpong

Fellow at CDD-GHANA, Dr. Kwame Asiedu Sarpong, has appealed to the Vice President and flagbearer of the ruling New Patriotic Party (NPP), Dr. Mahamudu Bawumia, to revisit his strategies to restore the cedi from its free fall journey.

Speaking on Kumasi based Abusua 96.5FM with Millicent Safo-Adu on Bresosem over the weekend, Dr. Asiedu Sarpong said that Dr. Bawumia, before becoming Vice President in 2017, had led Ghanaians to believe in his ability to strengthen the Ghanaian cedi.

He emphasized that during the opposition days, Dr. Bawumia outlined measures for cedi stability, but after almost 8 years in power, the cedi has depreciated from Ghc3.80 to Ghc15.

Dr. Asiedu Sarpong suggested that Dr. Bawumia should revisit his academic notes, recall the strategies he advocated for John Mahama to apply to strengthen the local currency and implement them to rescue the cedi from its current decline.

Expressing dissatisfaction with the government’s silence on the cedi’s depreciation, he stated, “The government must address the cedi issue as it impacts us all.”

Dr. Asiedu Sarpong illustrated the impact of cedi depreciation on an average Ghanaian worker earning Ghc3000, explaining that the purchasing power diminishes as imported goods become more expensive due to the weakened cedi. This, in turn, leads to price hikes by market vendors, affecting consumers directly.

Furthermore, Dr. Sarpong shared his concern over the significant depreciation of the cedi against major currencies, citing recent examples of the pound’s exchange rate fluctuations.

“From last week, on the 8th of May, I sent money to Ghana. One pound was Ghc17.13ps. The next day, the pound-to-cedi rate was Ghc17.25ps. Two days later, it moved to Ghc17.35ps. Yesterday, I sent money and it was Ghc18.17ps”, he stressed.

He highlighted the alarming trend of the cedi’s devaluation over a short period, underscoring the urgency of addressing this economic challenge.

“So, I decided to check the trend and understand what’s happening. I found out that on the 18th of April, a pound to a cedi was Ghc16.80ps. As of today, the 18th of May, it is trading at Ghc18.17, with almost 2 cedis added in 30 days”, he noted.

The call for a reevaluation of cedi restoration strategies comes amidst growing concerns over the currency’s decline and its implications on the economy and everyday life in Ghana.