Managers of the country’s economy appear to have locked up the US dollar in the currency market once again.
The cedi came under considerable pressure from the dollar, trading at GH¢4.9 to a dollar a month ago.
This attracted criticisms against Vice President Dr Mahamudu Bawumia from his political opponents.
However, he explained at a National Policy Summit in Tamale that the economic fundamentals were strong and that the marginal depreciation was as a result of the rebound of the US economy.
In the last two weeks, the cedi has been appreciating against the dollar, as the interbank rates showed the local currency traded at GH¢4.7 to a dollar.
This is a major relief to businessmen who were spending additional 20 pesewas to buy a dollar.
The Vice President last month at the event explained that interest rates of the dollar had been increased by the Federal Reserve of USA, causing the dollar to appreciate, hence the depreciation of the cedi and other currencies around the globe.
“Even India, a very strong and vibrant economy, has had its currency depreciated to the dollar,” Dr. Bawumia pointed out.
He disclosed that the cedi had depreciated by 7 percent – the second lowest depreciation of the cedi since 2012.
Comparing the data from 2012 to 2018, he said the cedi recorded 17.5% in 2012, 14.6% in 2013, 31.3% in 2014, 15.6% in 2015, 9.6% in 2016 and 4.9% in 2017.
During his days in opposition, Dr Bawumia affirmed that “if the fundamentals of the economy are weak, the exchange rate will expose you.”
According to him, the growth of the economy, even under unfavourable conditions, has been possible because of its prudent management, with strong fiscal discipline.
He stated: “Government has put in place measures to transform the economy to provide good climates for the growth of businesses, especially in the private sector. Such measures include the cancellation of some 15 taxes, which has significantly boosted trade and businesses in the country, especially importations. For the first time in the history of Ghana, GDP growths have seen an increase in non-oil products.”
The Vice-President said the debt-to-GDP ratio has declined to 64 percent as of 2018 – the first of its kind since 2007.
“And the difference between the NDC and the NPP is this – while the NPP is borrowing, debt-to-GDP is falling, but the opposite is always the case with the NDC,” the Vice President added.
Source: Daily Guide
Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority. |
This is the first vice president who goes around telling people of this country any small stuff he does as though he's still on a campaign trail ...so ***barred word*** and childish in everything he's doing .. people should not take Npp government serious because it is the same.thing Nana also does....you have spent all your money on one promise and now you got no money to run others sectors ...such a ***barred word*** of all time ..
@ Pee it is you and your cohorts who are trying soo haaarrd to paint the clean black but you wont succeed. Whatever this man Bawumia has said or predicted comes to pass. Which ones are the lies?? You talk about infrastructure to show? Ei so you are satisfied with this your so called infrastructure for over 100billion borrowed by the incompetent one? Smh. Now tell me if what Dr, Bawumia is saying is not true: ' the difference between the NPP and the NDC is this: While the NPP is borrowing, the Debt to GDP ratio is decreasing but the opposite is always the case for the NDC"
NARROW MINDED VICE PRESIDENT OF OUR TIME
The NDC has a problem in basic logic. They cannot appreciate that without a software a computer cannot work! They do not know that the cost of a single software can cost more than 1000 personal computers. They do not know that without science there can never be technology. Why are they so much interested in mega projects. No wonder, that is a socialist populist approach and understanding of development, since that is where they can inflate costs. Note that Kufuor did not start with any mage project, but by the 8th year he had touched almost every district in the country. A journey to the moon starts with a step. Whether they like it or not Ghanaians elected Nana and they will wait on him to deliver. And deliver he will.
Trying hard to paint the L i a r clean. Once a l i a r always... We can't be distracted! Lie, lie man. The one you claimed he is incompetent borrowed and has the infrastructure to show. Mr. Know All, what have you got to show for the amount you have so far borrowed. Sub-standard Goods. We are waiting for you again.
It is only the NDC which takes experience, hard work and assertiveness to be lies. Whatever the Dr. says comes to pass because he knows and means what he says. The NDC lies and vilification will not wash. A visionary leader is the one who can see virtue in a young man before he matures. Nana's discovery of the Dr as an asset to Ghana puts him apart from his peers. Ghanaians are waiting patiently and "impatiently" for 2020. The battle is still the Lord's. Long live the NPP, long live Ghana
These is how a competent gov't handles economy of a country. Where is The Incompetent One JM and his Incompetent NDC supports .