Deepen alliance with private sector to address cedi depreciation – GNCCI

The Ghana National Chamber of Commerce and Industry (GNCCI) has urged government to deepen its alliance with the private sector to avert the persistent depreciation of the cedi.

According to the immediate-past President of the GNCCI, Nana Dr. Appiagyei Dankawoso, the move will ensure an equal exchange rate regime is well achieved to enhance business growth.

Speaking at the Chamber’s 44th Annual General Meeting, Nana Dr. Appiagyei Dankawoso explained “The monetary policy rate was also reduced by 100 basis point in December 2018 to 17 percent and further maintained throughout 2019. The cost of credit reduced from 26.9 percent in 2018 to 23.6 percent in 2019 thus improving private sector credit growth and marginal decline of non-performing loans in 2019.”

He added, “On the external front, the local currency depreciated against all the major trading currencies; the dollar, pound sterling and euro in 2019. The Chamber maintains that a fairly stable exchange rate regime is critical for business growth. The Chamber, therefore, calls for collaboration between the private sector and government to address the perennial depreciation of the cedi."

Meanwhile, figures released by the Ghana Statistical Service (GSS) shows inflation rate has moderated from 9.8 percent in December 2018 to 7.9 percent in 2019.

According to the GSS, this can be attributed to a decline in non-food inflation and rebasing of the inflation basket.

Additionally, the average lending rate has also decreased 26.9 percent to 23.6 percent which places businesses currently operating in Ghana with a better credit advantage to function.