Cedi hasn't been this better in 8 years - Bawumia defends

Cedi hasn't been this better in 8 years - Bawumia defends

- Vice-President Dr Mahamudu Bawumia has commented on the recent fall of the cedi

- In his comments, Bawumia indicated that the cedi was doing better than it has done in the last 8 years

YEN.com.gh earlier reported that some Ghanaians had taken to social media to mock Bawumia over the free fall of the cedi after he had assured the populace that his party had arrested the dollar.

Vice-President Dr. Mahamudu Bawumia has however come out to defend the government's handling of the cedi insisting it has never been better in the last eight years.

According to a report sighted by YEN.com.gh on Myjoyonline.com, the vice president who was on Friday September 14, speaking during the launch of the National School Entrepreneurship Initiative in the Northern Region explained current happenings.

READ ALSO: Mahama has no right to say Akufo-Addo is looting state resources – Abronye DC

He pointed out that the slower rate of depreciation was because under the Akufo-Addo government, the fundamentals of the economy were getting stronger.

He added that more evidence of a strong economy was in the increasing economic growth rate, decreasing inflation rate, decreasing fiscal deficit, decreasing debt to GDP ratio and an improving gross international reserves.

Bawumia went o to reveal that the current depreciation could be linked to happenings in the US economy.

The US Federal Reserve has increased interest rates which has made the dollar attractive to investors.

"You see investors moving money into the US to buy US-denominated assets" because the rewards will be much better, he observed.

This move by the US government has far-reaching global implications on the strength of other currencies.

READ ALSO: Menzgold can provide $50billion loan to government - Bulldog fires Nana Addo

Although the cedi is trading close to 5 cedis to a dollar and more than 5 cedis on the black market, the Vice-President explained the rate of depreciation was much slower than previously.

Comparing the data from 2012 to 2018, Dr. Bawumia said the cedi recorded 17.5% in 2012, 14.6% in 2013, 31.3% in 2014, 15.6% in 2015, 9.6% in 2016 and 4.9% in 2017.

Bawumia said Ghana's 7% depreciation showed that the current managers of the economy had significantly strengthened the cedi against shocks from the dollar.

The Akufo-Addo government, he said, had done "much better than our predecessors and much better than other countries".

READ ALSO: Deporting me to Ghana worse than being jailed in UK – Adoboli

The Vice-President turned on the opposition National Democratic Congress (NDC) which has criticized the government over the depreciation.

He said a sign of good economic management was seen in the-debt-to-GDP ratio.

Dr. Bawumia said under the NDC, the debt to-GDP ratio was increasing whenever the government borrowed but under the NPP, "when we are borrowing, the debt to GDP ratio is falling".

"This is a big difference" he stressed and pointed out the reduction in debt to GDP ratio under the Akufo-Addo government was the first since 2007.

READ ALSO: Nigel Gaisie gifts shoeshines, traders in Accra GHC 11,000

Watch: Is Kofi Annan an Example for All? - Ghanaians Speak | Yen.com.gh

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Source: Yen.com.gh

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