According to Data Analysis, since the inception of fourth republic, the current exchange rate management is one of the best, Vice President, Alhaji Dr. Mahamudu Bawumia has stated.
According to him, the depreciation of the cedi under President Nana Akufo-Addo is the slowest since 1992. “So, the Bank of Ghana has done well.
Speaking to Ashh FM National Agenda hosted by Oderfour Qwasi Kay, Dr. Bawumia said the National Democratic Congress (NDC) has no locus to criticize this administration over the cedi performance..
“If you look at the micro fundamentals; your inflation and deficits, among others, affect the depreciation of the currency. “Under the NDC, the rate of depreciation of the cedi was too fast, from 2008 to 2016, the depreciation was very high. He asserted
“In fact, Mahama time, the depreciation of the cedi was 18-point-something per cent from 2013 to 2016”, but in our assumption of office from 2017 to 2019, the depreciation is eight per cent”.
“But in this election year, when normally you would expect a higher depreciation because of COVID-19 and other issues, this year, so far, the depreciation is 2 per cent – the lowest since 1992”, he argued.
“So, it’s a very good management of the economy”, the Vice-President said.
He explained that the, the current administration is not operating fixed exchange rate policy but rather flexible exchange rate management ,so the rate won’t be stagnant, it will move, but the rate of movement ,at first It used to be running like Usain Bolt but we have arrested that kind of depreciation”, he noted.
“In eight years, the NDC took us from one cedi to a dollar to four to a dollar – a fourfold increase”, pointing out: “If we had managed the rate like they did, it would have gone from four to 16 cedis to a dollar. But now, we are at 5.7 cedis to a dollar”.
He insisted that, “The Akufo-Addo government has done well as far as the management of the exchange rate is concerned. We have one of the best-performing currencies against the dollar in the world today”’