Cedi needs to be urgently rescued - IEA boss on continuous depreciation

With the Cedi on a persistent decline against major trading currencies, the government has been tasked to urgently adopt measures to shore up the local currency which is currently selling at GH¢15.90 to $1, and GH¢20.31 to £1.

Despite efforts by the government to stabilise the local currency, the Cedi remains uncompetitive.

Reacting to this development, the Director of Research at the Institute of Economic Affairs (IEA), Dr John Kwakye, has said it is about time government holds a national dialogue on how to stabilise the Cedi before it becomes irreparably damaged.

In a post shared on X (formerly Twitter), Dr. Kwakye highlighted the alarming rate of depreciation, noting that the Cedi has depreciated by 72% from 2016 to date.

"There is a need for an urgent national dialogue on how to rescue the cedi before it becomes irreparably damaged!" part of his tweet read.

"The official exchange rate has moved from 4.20 at the end of 2016 to 15.09 as of August 9, 2024, implying cumulative depreciation of 72% during the period. There is a need for urgent national dialogue on how to save the cedi from extinction," he added.

Dr. Kwakye advised that government can practice fiscal and monetary discipline to maintain stable exchange rate under a flexible regime with minimal reserves.

SA/MA

There is a need for an urgent national dialogue on how to rescue the cedi before it becomes irreparably damaged!

— J. K. Kwakye (@JohnKwabenaKwa1) August 12, 2024

The official exchange rate has moved from 4.20 at the end of 2016 to 15.09 as of 9 August, 2024, implying cumulative depreciation of 72% during the period. There is a need for urgent national dialogue on how to save the cedi from extinction!

— J. K. Kwakye (@JohnKwabenaKwa1) August 12, 2024

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