Following months of decline, Senior Minister, Yaw Osafo Maafo, is certain the three-month streak of the cedi's depreciation against the major trading currencies will cease before the end of March.
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He said the former NDC government was to blame for the depreciation because of their poor economic policies.
Mr Maafo assured Ghanaians that policy initiatives outlined in the budget statement delivered by the Finance Minister, Ken Ofori-Atta, will stabilise the currency but it will take up to one month before the markets respond.
Speaking to Joy FM he said “the cedi depreciated because the true economic situation of Ghana came out, the economy that was a cover up. The cedi depreciated because of the economy had performed poorly by at end of December. But now the budget has put in place measures that stem that whole economy, to reduce the deficit and improve our foreign reserves. It takes about three weeks to a month for people to respond to such economic indicators”.
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He adds, however, that the value of the cedi against the dollar is not likely to return to the pre-January 2017 rate when it picks up.
The local currency has depreciated by up to 6 percent since the New Patriotic Party (NPP) government took over power in January, raising concerns among business operators.
One dollar currently trades at GHS4.61p.