Ghana Cedi: GH¢12 Rate More Sustainable Than GH¢10.5, Says Expert
Dalex Finance CEO, Joe Jackson, dey talk say di recent ups and downs for di Ghana Cedi be because of di Bank of Ghana ein plans. E stress say di current exchange rate show say we dey go for better economy.
For interview wey e do for Channel One TV, Mr. Jackson look back how di Cedi do for di past six months under President John Dramani Mahama ein government.
“True true, when you check wetin happen, di Central Bank dey jump inside di market. As far as di Central Bank dey jump inside, di rates dey be around 10, 11. Then di Central Bank announce say dem no go jump inside again. As dem announce say dem no go jump inside, wetin happen? Di rate shoot up from 10, 11 go 12 plus,” na so e explain am.
E argue say di Cedi ein level now, wey dey above GH¢12 to di dollar, be “far more defensible position” for di Central Bank compared to di GH¢10.5 rate wey we get before. Even though e make heart dey sweet for short time, e overvalued and no go fit last.
“But for my mind, di rate of 12 plus be far more defensible position for di Central Bank than 10.5. And say di 10.5, even though e make everybody feel good and dem dey expect better things, as time dey go because of how much di Cedi overvalued, e for bring wahala come give we,” na so e add.
Mr. Jackson ein talk dey show say di Bank of Ghana dey take time dey plan, say dem dey put long-term currency stability and management wey go fit last first, before dem go think about market excitement for short time for di early months of di Mahama government.
Wetin dis mean for Ghanaians?
- Prices of goods dey go up and down.
- Businesses go need plan well for exchange rate changes.
- Government go need make sure say di Cedi dey stable so say e go attract investors.
Conclusion
Joe Jackson ein comment dey throw light on di complexities wey dey inside managing currency for Ghana. E dey important make we understand di factors wey dey affect di Cedi ein value so say we go fit make informed decisions.