Fifi Fiavi Kwetey, the newly-elected General Secretary of the opposition National Democratic Congress (NDC), has warned the ruling New Patriotic Party (NPP) to quit taking pleasure in the recent strengthening of the Ghana cedi versus the US dollar.
Mr. Kwetey, who has held the offices of Deputy Minister of Finance, Minister for Agriculture, and Minister for Transportations, says that while the appreciation of the cedi is good news for Ghanaians because it will provide them with some relief, the current trend cannot be sustained because it is unnatural.
He claims that as soon as the artificial reasons that are causing the cedi to appreciate subside, the genuine worth of the currency will become apparent.
You know, when you have a situation where the massive importation into your nation is not happening because you have somehow set up a system where people cannot have access to, say, the dollars to be able to undertake the importation, you create an artificial appreciation of your currency.
"The same holds true for various developments as they relate to portfolio investors. Thus, there is absolutely nothing to rejoice about.
"These are only temporary, artificial solutions. In an interview with Accra-based TV3, he stated, "We will precisely see the true value of our currency. Once this false wind stops blowing, we will see the genuine sustainable condition.
Over the past two weeks, the Ghanaian cedi's value has increased in relation to US dollars.
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The President of the Republic, Nana Addo Dankwa Akufo-Addo says the recent appreciation of the Ghanaian cedi is attributable to good policies put in place by his administration.
The Ghanaian Cedi is appreciating against the United State Dollars, but many Economists and Financial experts have attributed it to external factors.
However, President Akufo-Addo, while speaking at the centenary celebration of the Ga Presbytery of the Presbyterian Church in Accra on Sunday, December 18, 2022, said the cedi is not appreciating by chance.
The strengthening of the cedi has not happened by chance, but through the implementation of deliberate policies by the Government, in collaboration with the Bank of Ghana, He said.
The President used the opportunity to enumerate some of the interventions his government introduced to strengthen the cedi against the other foreign trading currencies.
Cedi liquidity tightening measures, resulting in the offloading of forex, as a store of value, by speculators; the improvement of forex flows from remittances and the mining sector; and the reaching of a staff level agreement with the IMF for a US$3 billion package.
However, many financial analysts, including Fifi Kwetey, believe that the current appreciation is caused by artificial forces rather than any measures or policies adopted by the government.
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