Vice President of policy think tank IMANI Africa has stated his amazement about the current fast run of the cedi against the dollar.

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According to him, it came as a surprise to realize that the government is using its reserves to strengthen the dollar.

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In a tweet on December 19, 2022, he wrote: “Okay, I was wrong. I told folks at various times that the govt of Ghana will not suspend payments on the external debt until it formally engages creditors on a plan next year. I did not anticipate that it will burn thru its reserves to reinforce a run on the dollar.”

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The Ghana cedi has, in the last two weeks, gained about 63% against the dollar. The currency raced from behind to become the strongest performer against the dollar in the past week.

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The government has associated the appreciation with the announcement of the debt exchange programme and the staff-level agreement reached with the International Monetary Fund.

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Meanwhile, President Nana Addo Dankwa Akufo-Addo has stated that the appreciation of the cedi against all major trading currencies is a result of deliberate policy interventions introduced by the government over the last few months.

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According to President Akufo-Addo, “the strengthening of the cedi has not happened by chance, but through the implementation of deliberate policies by Government, in collaboration with the Bank of Ghana.”

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Source: Ghanaweb

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