An economist at the University of Ghana Business School (UGBS) says the upsurge of the cedi against the major trading currencies may not last long.
Professor Godfred Bokpin said even though the stabilisation is good, it cannot be sustained or be stable in the long run.
According to him, the resurgence is not backed by strong economic fundamentals.
However, he commended moves by authorities to tackle the cedi as it would bring some relief to Ghanaians.
“Because it is not driven by strong economic fundamentals, you cannot say it is going to last. But at least what we have seen is good. It means the system is responding to the changes.”
“The cedi thrives on technicalities and general sentiments. When the sentiment is good, the cedi feels it also.
“The 2023 budget has also brought some clarity in terms of the way forward with the Staff Level Agreement. All of these things working together moderate the economic uncertainties,” he said during a roundtable discussion by the Citizen’s Coalition on Thursday, December 15.
The Ghanaian currency has continued to strengthen against the US dollar and all the other major foreign currencies.
In the last two weeks, the cedi has been on a path of resurgence against all the major trading currencies.
The local currency is currently trading at ¢8 to a dollar.
The pound and euro are also selling to the cedi at ¢9.80 and ¢8.50, respectively.