Economist and Professor of Finance at the University of Cape Coast, Professor John Gatsi, has expressed disagreement with Finance Minister Dr. Mohammed Amin Adam’s claims that the Ghanaian cedi is very strong, stating that the cedi’s performance spells woes for the economy.
According to Prof Gatsi, the Finance Minister appears not to be addressing Ghanaian business owners, stressing that businesses are still bearing the brunt of the cedi’s rapid depreciation.
Dr. Amin Adam, in his monthly briefing on the economy on Friday, May 24, asserted that the local currency has “largely stabilised” with a 14.2 percent rate of depreciation as of May 20, 2024.
“The Cedi’s stability has continued into 2024, with a cumulative depreciation of 14.2% as of 20th May 2024, compared to 20.7% recorded in the same period in 2023. So on that comparative basis we are safe to conclude that the cedi is still strong, very strong,” he emphasised.
“We expect the cedi’s stability to improve into the medium-term as we complete debt restructuring, make more progress on fiscal consolidation, and improve our reserves over the medium-term,” Dr Amin Adam told pressmen.
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But the economist, in an interview with Beatrice Adu on 3FM on Friday, maintained that the statistics from the Finance Minister are not the true reflection on the grounds.
“I am not sure he [Dr Amin Adam] is talking to Ghanaians and Ghanaian business people and individuals. We do know that we are all crying about the performance of the cedi, its actually escalating cost of doing business, it is escalating cost of importation it’s impacting on price development in the country. It is making the execution of contracts overpriced for government.
“It has increased the debt portfolio of the country and therefore these performances cannot be a robust performance, cannot be a better performance but this is a performance that actually spells woes of the Ghanaian economy.”
Prof. Gatsi further stated that the claim by the Finance Minister does not in any way attempt to share in the plights of businesses because some businesses are folding up due to high operating costs.
“When GUTA and co. are talking about the challenges that they are facing, the cost implications of the cedi to them, you only come to tell them that the cedi is very strong, is that the answer to their plights? So that’s why I’m saying that he is not speaking to Ghanaians,” he said.
