A fellow at CDD-GHANA has called on Dr. Mahamudu Bawumia, the Vice President and Flagbearer of the ruling New Patriotic Party (NPP), to reconsider his strategies to halt the cedi’s ongoing depreciation.
Dr. Asiedu Sarpong pointed out that Dr. Bawumia had once inspired confidence among Ghanaians regarding his ability to stabilize the Ghanaian cedi and needs to do that again.
He noted that while in opposition, Dr. Bawumia had proposed various measures for ensuring cedi stability. However, after nearly eight years in power, the cedi has depreciated significantly from GH¢3.80 to GH¢15.
Dr. Kwame Asiedu Sarpong made the call during an interview with Kumasi-based Abusua 96.5FM’s Bresosem over the weekend,
He urged Dr. Bawumia to revisit his earlier academic recommendations and strategies, which he had once suggested to former President John Mahama for cedi stabilization, and implement them to address the current decline.
Expressing his frustration with the government’s lack of response to the Cedi’s depreciation, he stated, “The government must address the Cedi issue as it impacts us all.”
Dr. Asiedu Sarpong illustrated the adverse effects of the cedi’s depreciation on an average Ghanaian worker earning GGH¢3000. He explained that as the cedi weakens, the cost of imported goods rises, leading to price increases by market vendors and directly affecting consumers’ purchasing power.
He also shared his concern over the significant depreciation of the cedi against major currencies, citing recent examples of the pound’s exchange rate fluctuations.
“From last week, on the 8th of May, I sent money to Ghana. One pound was GH¢17.13ps. The next day, the pound-to-cedi rate was GH¢17.25ps. Two days later, it moved to GH¢17.35ps. Yesterday, I sent money and it was GH¢18.17ps”, he stressed.
He stressed the alarming trend of the cedi’s devaluation over a short period, underscoring the urgency of addressing this economic challenge.
“So, I decided to check the trend and understand what’s happening. I found out that on the 18th of April, a pound to a cedi was GH¢16.80ps. As of today, the 18th of May, it is trading at GH¢18.17, with almost 2 cedis added in 30 days”, he noted.