Economist Professor Godfred Bokpin says they are other external factors also responsible for the stability of the Ghanaian cedi.
Prof Bokpin said the management of the economy alone cannot be said to be the reason the cedi is holding up to other major trading currencies.
Vice President Dr Bawumia has on many occasions touted the effective management of the economy for the stabilisation of the Ghanaian cedi.
He believes that the economy is well managed to result in the gains being seen on the various economic indicators.
But Prof Bokpin said the assertion cannot be true because there are other factors also responsible for this.
He first mentioned that the Bank of Ghana’s quest to build the country’s international reserve is one of the key factors.
“If you look at even from the beginning of the year even before Covid-19 showed its ugly head in our part of the world you could see the performance of the Cedi, you can trace it to some underlying strategies one is the fact that bank of Ghan has been building its international reserve for the 2020 elections usually during an election year the Cedi comes under a cumulative pressure and that is due to election campaign issues so that is clear.”
Prof Bokpin also said global interest rates have also gone down.
But of course, so you also look at the slow down or general the … in the global supply chain which is also affecting import but also affecting export but then you have to look at the balance of what the impact is and that may also be showing up in the performance of the Cedi but more importantly, if you look at the drop in global interest rate because of some…, interest rates are particularly low for that reason those investors who will normally seek the redemption of their investment from Ghana for which reason could cause the cedi to depreciate that has also slow to some extent..” he added.
The Cedi is today trading against the dollar at GHS5.76876
