BoG backs bi-partisan probe into Cedi depreciation

The Bank of Ghana has backed the formation of a bi-partisan committee to probe the continuous depreciation of the Cedi.

According to the Governor of the BoG, Dr Ernest Addison during the announcement of the Policy Rate yesterday said it's necessary to find a solution to the structural problems of the Cedi making it always depreciating.

Finance Minister Ken Ofori Atta addressing Parliament last week said government will form a bi-partisan committee to probe the continuous depreciation of the cedi.

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Ken Ofori Atta told MPs that after the continuous depreciation of the currency from December last year to March this year, President Akufo-Addo has directed him to find the structural cause of the cedi depreciation.

“The president has directed that I investigate the structural causes for the depreciation of the cedi and to propose measures to address the situation, the government and I will put a bi-partisan committee together to proceed immediately.”

Speaking on the Cedi depreciation, BoG boss said until the country has a current account surplus the cedi will continue to depreciate.

"The Bank of Ghana's policy brief to Cabinet emphasized on the importance of structural factors in the behaviour of the cedi this is why we never see the cedi appreciating and you always see one buyers approach where the cedi always depreciate, and you have to understand that this is the case because of the structure of our economy, if you look at our trade balance and our current account balance we always have current account deficit and until we get to the point where we have current account surplus the cedi will only go in one direction, so these are the structures we are talking about so first we need to improve the local content associated with our export so that services going to the oil sector can be provided by Ghana reisdents."

 

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