GNCCI President expresses worry over cedi depreciation

President of the Ghana National Chamber of Commerce and Industry (GNCCI), Dr. Nana Appiagyei Dankawoso I has expressed worry over the depreciation of the cedi against the dollar.

According to him, although the chamber appreciates the relative stability in the macroeconomic environment following government’s pursuit of sound monetary and economic policies and programmes, they are however concerned about the recent fall of the cedi against major trading currencies.

Speaking to the media at the launch of the 2nd Chamber Business Awards 2017, Nana Dankawoso I said he is unhappy because each time the cedi depreciates, it affects everything within the economy making businesses run at a loss.

“It’s all around the dollar and the major currencies so anytime there is a fall of the cedi I become so much worried because all the imports that we make and the taxes and everything go up and when that is done it is the final consumer that suffers and it also affects the general economy of the country. So it is not a palatable situation at all”, he said.

He further added “as a leader of the private sector, we have to make sure that the volatility of the major currency is always at the best in time. So anytime the cedi depreciates it affects everything within the economy, I’m not happy at all”.

Nana Dankawoso I has therefore called on government to fix the cedi depreciation to ease the cost of doing business in Ghana.

As at May 7, the cedi was trading at 4 cedis, 41 pesewas, but by June 7 it had depreciated by 0.7 percent to 4 cedis, 44 pesewas.

The central bank has already assured that the changes in the exchange rate are temporary, and the cedi will soon see some stability.

Serious concerns have been raised concerning the depreciation of the cedi sparking a feud between the governing New Patriotic Party and the National Democratic Congress.

Former President John Dramani Mahama took to social media last week to ridicule the New Patriotic Party complaining about the current cedi to dollar exchange rate, which he said currently stands at GHc4.7 to $1.

He accompanied his words with a short video of Dr. Bawumia supposedly expressing misgivings about the NDC’s handling of the local currency while they [NDC] were in power.

Vice President Dr. Mahamudu Bawumia subsequently issued a scathing response saying Mahama’s criticism only exposed his lack of understanding on issues bordering on key aspects of the economy.

“It has been brought to my attention that former President Mahama has recently been talking about exchange rate depreciation. The former President’s comments once again, sadly demonstrate his lack of understanding on key aspects of our economy,” said the Vice President.

In Mr. Bawumia’s view, NPP has demonstrated to be “by far, better managers of the Cedi” than the NDC.

“In the entire 8 years of President Kufuor’s (NPP) rule from 2001 to 2008, the price of the Cedi relative to the dollar moved from GHc0.7 to GHc1.2, representing a depreciation of 72%. However, in the 8 years rule of both Presidents Mills and Mahama (NDC) from 2009 to 2016 the Cedi depreciated by 247%, moving from GHc1.2 to GHc4.2. Such higher rate of depreciation in less than a decade is simply unacceptable and signifies high levels of incompetence,” Dr. Bawumia said.

However, the Deputy Trade and Industry Minister, Robert Ahomka-Lindsay speaking at the programme said government is working on specific interventions to address the depreciation of the cedi against the dollar.