A Former Deputy Bank of Ghana Governor, Emmanuel Asiedu \u2013 Mante has warned, the cedi risks depreciating massively if government does not check its expenditure.<\/p>\n
According to him, the cedi can only stabilize if government fiscal consolidation holds.<\/p>\n
[contextly_sidebar id=”KeHSy8ctcIbZI5OjAq2LQCIDO8YN6gJJ”]Some currency analysts are predicting the cedi will depreciate further in the first quarter of 2016 as a result of government\u2019s inability to sustain its efforts aimed at correcting the drop in the value of the currency.<\/p>\n
According to the Bank of Ghana as at December 2015, the cedi depreciated by 15.7% against the dollar.<\/p>\n
In an interview with Citi Business News<\/strong>, Emmanuel Asiedu-Mante said, it will be difficult for government not to over spend its revenue especially this year being an election year.<\/p>\n \u201cIf government\u2019s spending will hold, it is a big thing, this is an election year and there is the tendency to overspend, if fiscal policy will hold then the cedi will also stabilize but if government goes about spending more than its able to mobilize by way of tax revenue, then we are going to have a problem,\u201d He noted.<\/p>\n Commenting on how the IMF\u2019s recommendation on tight fiscal policies will impact on the cedi\u2019s performance, the Former Deputy Governor said,<\/p>\n \u201cThat was in reference to fiscal policy that the consolidation is holding, in other words government is not overspending and if that situation continues till the end of the first quarter, then probably we will be getting somewhere but if that fiscal consolidation doesn\u2019t hold and government overspends then we are going to be in trouble.\u201d<\/p>\n –<\/p>\n By: Norvan Acquah-Hayford\/citifmonline.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":" A Former Deputy Bank of Ghana Governor, Emmanuel Asiedu \u2013 Mante has warned, the cedi risks depreciating massively if government does not check its expenditure. According to him, the cedi can only stabilize if government fiscal consolidation holds. [contextly_sidebar id=”KeHSy8ctcIbZI5OjAq2LQCIDO8YN6gJJ”]Some currency analysts are predicting the cedi will depreciate further in the first quarter of 2016 […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":[],"footnotes":""},"categories":[121,32],"tags":[],"class_list":["post-184828","post","type-post","status-publish","format-standard","hentry","category-banking-and-finance","category-business"],"_links":{"self":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/184828","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=184828"}],"version-history":[{"count":0,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/184828\/revisions"}],"wp:attachment":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=184828"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=184828"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=184828"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}