Stephen Amoah Defends Akufo-Addo Government’s Struggles With Cedi Depreciation: “Ritual Problem”
- Deputy Finance Minister Dr Stephen Amoah has lamented the challenges fueling the cedi depreciation
- Speaking to the media, Amoah described it as a “ritual problem” in need of a holistic solution
- The deputy minister cited the persistent demand for foreign currency due to high import levels as a significant problem
Dr Stephen Amoah, a deputy finance minister, has decried the systemic challenges fueling the cedi depreciation and said it was not the Akufo-Addo administration’s sole fault.
Speaking to the media, he described it as a “ritual problem” that needs a national solution.
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His comments in recent media engagements have courted criticism as he tries to distance the Akufo-Addo administration from the challenges of the weakening cedi.
He cited the persistent demand for foreign currency due to high import levels as a major problem.
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Amoah also said holding the Akufo-Addo administration solely responsible would be dishonest.
The deputy minister also maintains that the NPP flagbearer, Mahamudu Bawumia, has a long-term solution.
“…Inshallah, Alhaji Dr. Mahamudu Bawumia, next year if he comes, we're going to design a long-term framework to deal with the cedi," he added.
The cedi depreciated 14 percent against the US dollar in 2024. It began the year trading at GH¢11.97 to a dollar on the interbank market and GH¢12.33 on the retail market.
Currently, the cedi is being bought at GH¢13.90 and sold at GH¢13.91 at the interbank rate, with forex bureaux in Accra quoting prices as high as GH¢16.30 to the dollar.
The Ghana Federation of Traders has called on the government to take measures to lower the exchange rate from GH¢10 to $1.
The Federation Deputy Communications Director, David Kojo Amoateng, told YEN.com.gh the government needed to give assurances to Ghanaians.
"When you are on a flight and you are experiencing any turbulence, the pilot will announce it to you that within the next 10 or 15 minutes, we will be experiencing this... Government should come out and tell us the reason this is happening.”
Call to dollarise Ghana's economy
The Institute of Economic Affairs (IEA) recently proposed that Ghana adopt the dollar to stabilise the economy.
According to Dr John Kwabena Kwakye, the director of research at IEA, this should temporarily stabilise the economy.
Adopting the dollar means Ghana would have to either abandon the use of the cedi entirely for the dollar or use the dollar and the cedi interchangeably.
Kwakye said this should be a stopgap to fix the destabilised economy until it rebounds.
The Executive Secretary for the Importers and Exporters Association of Ghana, Sampson Asaki Awingobit, told YEN.com.gh that this call was not prudent.
“What I think is the government must put measures in place to be able to control the cedi from further depreciation.”
Fuel prices expected to go up from June 2024
YEN.com.gh reported that according to the Institute for Energy Security (IES) predictions, fuel prices are expected to increase again in the first half of June 2024.
The IES cited the worsening cedi as the main reason for the expected increase in fuel prices.
It explained that petrol, diesel, and Liquefied Petroleum Gas have dropped internationally, but the cedi's depreciation has prevented Ghanaians from benefiting.
Proofread by Edwina N.K Quarcoo, journalist and copy editor at YEN.com.gh.
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Source: YEN.com.gh
