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Company News of Thursday, March 21, 2019
Source: citinewsroom.com
2019-03-21
Fifi Kwetey, former Deputy Minister of Finance
Fifi Kwetey, former deputy finance minister under the Mahama administration, said that the recent appreciation of the cedi was only temporary and that it would depreciate again.
According to him, the injection of government capital into the economy in order to prevent the currency from depreciating will not solve the problems related to the economic fundamentals responsible for the depreciation of the currency.
On Wednesday, Ketu South MP told Eyewitness News that the government took a similar action in 2018 to stabilize the currency when it was traded at around 4.7 GHc against a dollar, but that stability was short duration.
"It's like if you're suffering from a serious illness, then you were given a painkiller and, over the period, the problem seems to have disappeared, but the problem is still there. If, around the month of September, he was pushing towards GHc5 and that, following the receipt of cocoa recipes, he stayed around GHc4.7, what happened? In no time, he went beyond the GHc5 and was now heading for the GHc6 despite the injection last year, "he said.
Until early this week, the value of the cedi had dropped significantly, raising concern over serious economic problems.
At one point, it was trading at 5.80 GHc to the dollar, but it began to strengthen this week after a government intervention that was actually producing obvious results within two weeks.
The minority in Parliament has already discredited this development, but the government has not been long in praising its achievements, which are, according to him, the sign of a stronger economy.
But Fifi Kwetey says the improvement with the cedi will not last.
"This temporary injection that took place will basically have the same effect [as last year]. They did this, thinking it would draw people into a sense of security, but that security would be short-lived, "he said.
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