The Ghana cedi is not the weakest currency in Africa, as claimed by Dr. John Kumah, the deputy finance minister.
He asserts that such a claim is untrue and just intended to discredit the government’s budgetary policies intended to stop the free slide of the cedi versus the dollar.
Despite admitting that the cedi may be depreciating at the worst rate on the continent, he claimed that it is currently the third-strongest currency in Africa.
Dr. John Kumah said this on JoyNews’ PM Express Business Edition that critics of the government’s fiscal policies cannot blame the weak performance of the cedi on fiscal mismanagement because currencies throughout the world are depreciating.
And, as you may have heard from the propaganda, the Ghana cedi is the worst in Africa, among other things, he continued.
Look, don’t buy into that spin.
The second-strongest currency in Africa is found in Tunisia, where I recently returned from on a program.
In reality, Ghana comes in third place in any worldwide currency rating.
I’m referring to the power of African currencies.
The third-strongest currency in Africa is the Libyan Dinar, which is followed by the Tunisian Dinar and the Ghana Cedi.
But it’s possible that they were discussing the rate of depreciation.
“I just saw what is happening in Nigeria and they are equally complaining that their Naira is not just four hundred and something to the dollar, but sometimes it’s even 700 depending on where … sometimes they can’t even find the dollar. So this is a global situation.”
He added, “So it is not just a Ghana situation, it is something that is happening globally and people should not begin to think that it’s as a result of some bad policy or whatever.”
He claimed that the government had implemented several policies that it thought would help the economy and stabilize the cedi’s exchange rate with the US dollar.
But the good news is that, as we previously stated, the government is taking action by holding the foreign exchange auctions that the Bank of Ghana occasionally conducts in order to interfere in the market and promote peace and stability on the foreign exchange front.
Then, in order to strengthen our gold reserves, we also started buying gold.
Not only that, but by the end of the month or early the following month, we anticipate receiving the Cocoa syndicated loans, which will also help to support our economy.