Ghana’s investor community is unhappy with the inconsistencies in the Ghana Cedi’s performance, Minority Spokesperson on Finance, Casiel Ato Forson has claimed.
According to Mr Forson, the recent depreciation in the cedi has weaned investor-confidence in the country’s economy.
The cedi, until recently has been performing poorly against the world’s major currencies, depreciating from ¢4.9 to around ¢5.6 between February and March to spark fears among the business community.
It has however bounced back to sell at around ¢5.3 cedis to the dollar on Tuesday.
Speaking on Asempa FM’s Ekosii Sen show, Mr Forson said it was about time the government accepted the reality that the fundamentals of the economy were weak hence the pressure on the cedi.
“The investor community is panicking; within less than 10 weeks in 2019, the cedi had hit above 5.5 which is a problem,” he said.
He said businesses had begun to collapse as a result of the cedi depreciation but a lot more will collapse in the near future if nothing is done to arrest the situation.
“The appreciation is self-inflicted and does not resolve the vulnerability of the economy. This development “will push up the cost of production, make domestic businesses less competitive, and will eventually push them out of business,” he noted.
Source: Adomonline.com/Gertrude Otchere