Ghana's Import & Export Structure Part Of Cedi's Woes – Ken Kuranchie | Social

The Managing Editor of Daily Searchlight Newspaper, Ken Kuranchie says the export and import construction of the nation's economic system is the reason for quick depreciation of the cedi in opposition to main currencies.

He intimated that solutions to the devaluation of the cedi is on the division of economics on the University of Ghana.

“There is a book there called Economy of Ghana 101. Every politician should read it. We should go to the people at the economic department of the University of Ghana, get the book and read it,” the managing Editor suggested.

He careworn the challenges with the cedi are embedded within the e book including that the problems handled within the e book should do with the nation's import and export construction of the economic system.

Meanwhile, he mentioned he believes that the cedi is heading in direction of its pure place.

“You know every animal has a habitat and the cedi is heading towards its natural habitat. When Kwame Nkrumah gave us the cedi its value was comparable to the pound sterling. But by the time we got towards the later part of Rawlings tenure one dollar was 10,000 cedis” Mr. Kuranchie advised Starr News.

According to him, the state of affairs then knowledgeable former President Kuffuor's determination to introduce what is named the redenomination.

Mr. Kuranchie, nonetheless, added that the redenomination about 16 years in the past by former President John Agyakum Kuffuor was not useful and “his government could not explain why cedi was equivalent to dollar after the redenomination.”

“So till we sit and reply that query and deal with it and start to passionately take care of that drawback. The cedi will proceed to move to its pure place and we're heading to a really deep and darkish place.

The Minister of Finance, Ken Ofori-Atta has mentioned Ghanaians mustn't panic over the excessive depreciation of the Cedi.

The woes of the Ghana Cedi continues to deepen because the foreign money has depreciated and reaching GHC17.5 to 1$.

But, Ken Ofori Atta believes the economic system will bounce again quickly and the Cedi stabilized following measures being put in place by the government.

“…It is a bit perplexing but as you know, typically we go to market at the beginning of the year and get our 2 billion, this we were not able to do. We were able to get our 750 from AfroExim and in the summer – August or so things stabilized a bit. Then we moved on traditionally as we do with the ASL (Annual Syndicated Loan) of COCOBOD and that came in very strongly. So it's a bit perplexing to see where it's going.”

“Of course, typically in October, people are importing for Christmas, and maybe there's a rush for that. But my expectation is that once we also concluded with the Fund that will lead to the Fund's disbursement early next year. With the support we are getting from countries like Germany, France etcetera, we are confident that we'll get the resources needed. So we really will want people not to panic or be rushing for that pressure on the currency. I think it is unnecessary and we are in good shape,” Mr Ofori Atta mentioned in an interview in Washington.