An economist and lecturer at the C.K Tedam University of Technology and Applied Sciences, Bismarck Osei among other things, attributed the worse-performing cedi to major foreign currencies as a result of the country’s debt stock to Gross Domestic Product (GDP).
“We are becoming a debt distress country and we are servicing some of these debts, some are foreign debts with foreign currencies and that is putting pressure on the cedi.”
The lecturer’s remark comes after a recent currency performance ranking by Bloomberg which has classified the Cedi as the worst performing currency across the globe after Sri Lanka’s Rupee.
The cedi as of Wednesday depreciated near to Ghc 10 against the United States dollar. The worsening situation has always been attributed to the impact of the Russia-Ukraine war and Covid-19 by the country’s economic management team.
But the lecturer at the C.K Tedam UTAS disagrees. According to Mr. Osei even though the Russia-Ukraine war has affected international trade, the continued fall of the Ghanaian cedi cannot be attributed to the war.
Among key causes of the depreciating cedi, Mr. Osei believes the country’s public repatriation which allows business owners to repatriate 100 percent of profit accrued in the country is putting pressure on the cedi.
Source: A1Rdioonline.com|101.Mhz|Joshua Asaah|Ghana