"Cedi will start ferociously depreciating". 8 Gh ¢ the dollar over the next 5 months – Pratt Predicts | Policy

Editor-in-chief Insight newspaper, Kwesi Pratt Jnr. predicted that the cedi would begin to depreciate again to reach 8 ¢ per dollar in the next 4 to 5 months, despite the 800 million euro bond injected into the economy.

He explained that in the last 36 years, whenever the cedi was depreciated, successive governments had used the same borrowing method to strengthen the local currency, resulting in the stability of the cedi for a brief period, mainly five months; then he begins to depreciate again.

For example, the $ 800 million Euro bond that Finance Minister Ken Ofori-Atta recently negotiated is "not something new".

Contribute to Gold Radio& # 39; s & # 39;Alhaji and AlhajiKwesi Pratt was convinced that the measures taken by the Akufo-Addo government to solve the problem of the depreciation of the cedi are cosmetic.

"I will not be surprised even in the space of 2 to 3 weeks, the cedi stabilizes around 4.8 or 4.9 to 5 for a dollar, this will probably happen in the next 3 to 4 weeks But, notice, In 4 to 5 months, the cedi will begin to depreciate fiercely and the moment we wake up, it will soon go to Gh ¢ 8 to a dollar ", he warned.

He reiterated that the government would definitely repay the loan that had served to stabilize the cedi with interest, and that the situation of the economy would be worse.

"Your cedi is not doing well, all you are doing is borrowing and pumping into the economy to get the appearance of stability.Do you not pay the money you borrowed?" When you start withdrawing 800 million dollars of your economy to pay for the money you use to stabilize the cedi, what will happen to the cedi again? " he questioned.

He was therefore of the opinion that "If it is worth celebrating the stabilization of the cedi by injecting currency into the economy, we should have started our parties 36 years ago. I remember that at the time of the late Professor Mills, when Mr. Duffuor was the Minister of Finance, the same method had been used and no one had organized a party. "

"… as we stupidly announce to speculators on currencies that we are going to inject $ 800 million into the economy to stabilize the cedi … they are zooming in like flies and, within a maximum of 4 months Currency speculators will pick up all the 800 million dollars from the Ghanaian economy because they constantly watch out for places where it is cheaper to buy foreign currencies to maximize their profits. all these Mallams and Alhajis who are the sheikhs of the currency speculations will become fabulously rich and the cedi will begin to depreciate ", he added.

He therefore described as "completeloss of time and resources ", the injection of $ 800 million of bond capital into the economy by the finance minister in order to stabilize the cedi; pointing out that such a measure will not work.

Last week, the government raised $ 3 billion from international financial institutions through a three-tranche Eurobond that drew more proposals than the country had requested. .

At the close of a tour in London, the appetite for the sovereign loan of 2019 had grown, which had resulted in orders totaling $ 21 billion, or about seven times more than the amount needed.

The government delegation, led by Finance Minister Ken Ofori-Atta, however, agreed to only $ 3 billion, according to the budgeted amount approved in the 2019 budget and the government's economic policy.