Cedi Depreciation: Clamp down Operations of ‘Black Market’-Financial Analyst

11 March 2019

A Financial Analyst cum Senior Lecturer at the Kumasi Technical University, Mr. Ishaaq Kyei Brobbey wants Bank of Ghana to clamp down on the growing operations of black marketers in the foreign exchange business.

The illegal business has been cited as one of the major constraints to stabilizing the cedi. The comments come in the wake of debates on the need to for Bank of Ghana to inject US$800million dollars to stabilise the cedi.

The Bank of Ghana (BoG) has signalled that it will inject US$800million into the system to shore-up one of the fastest depreciating currencies in the world — the cedi.

The cedi today has reached GH¢5.50 against a dollar. A report from the central bank’s research has shown that the cedi will continue to depreciate throughout the year due to some external factors that the country has no control over.

Speaking as a guest on Ashh Fm’s National Agenda Monday, 11th march, 2019, Mr. Ishaaq Brobbey told host of the show, Oderfuor Quasi Kay that, injecting $800million will be a short- term measure that in the long-run will be a useless exercise.

Mr. Brobbey argues that until fundamentals of the economy are strong, no amount of short-term measures will redeem the strength of the cedi.

The vociferous Analyst called on the government to learn from the experiences of other countries which have had to deal with currency depreciation of their own in recent times.

Sources :myashhfmonline.com