The cedi is expected to register some level of depreciation by the end of the first quarter of this year.
This is according to an economist Dr. Ebo Turckson who says the development is due to the current panic buying of dollars by speculators.
[contextly_sidebar id=”AZLl40KIO9gRWE9err56XriamWUM8FT4″]The cedi has begun experiencing some slight level of depreciation against major foreign currencies like the dollar, pound and Euro.
On the opening day of trading this year on the interbank foreign exchange market, a dollar was being exchanged at 3 cedis 78 pesewas but it is currently at 3 cedis 82 pesewas.
Speaking to Citi Business News, Economist and Senior Lecturer at the University of Ghana Dr. Ebo Turckson said the cedi is likely to 4 cedis 30 pesewas by the end of this quarter.
“Speculators already know around this time that is what is going to happen to the cedi so they also store whatever they have that is why there seem to be panic buying. Every other thing that is required for our producers to be competitive are on the opposite side increased utility, taxes have gone and if the cedi is also going to depreciate very fast then it means we are almost getting into a situation of a recession and the implication is not too good because we are looking at increased job losses and unemployment, Dr. Turckson said.
“At the end of the first quarter, we should be looking at 4 cedis 35pesewas to the dollar or thereabout … framers of the economy will have to act as swift as possible to help build confidence in the currency as best as possible,” He further noted.
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By: Norvan Acquah-Hayford/citifmonline.com/Ghana