The Minister for Parliamentary Affairs and caretaker Minister for Finance, Osei Kyei-Mensah-Bonsu has touted last year’s performance of the cedi against the other currencies.
According to him, the depreciation of the cedi against the dollar in 2020 is the lowest recorded so far in the fourth republic, in spite of the dire effects of the COVID-19 pandemic.
He made this assessment during his presentation of the 2021 budget statement and economic policy on the floor of Parliament on Friday, March 12, 2021.
“…Cumulatively, Mr. Speaker, the Ghana cedi depreciated against the US dollar, the Pound Sterling and the Euro, by 3.9%, 7.1%, and 12.1% respectively. This compares with the larger depreciation rate of 12.9%, 15.7%, and 11.2% from the US dollar, the Pound Sterling, and the Euro respectively during the same period in 2019. It is worth noting that the depreciation of the Ghana cedi against the US dollar in 2020 is the lowest recorded in the fourth republic notwithstanding the COVID-19 pandemic.”
This is not the first time the government has made this assertion.
The Vice President, Dr. Mahamudu Bawumia in November last year noted that Ghana, under Akufo-Addo’s administration had seen the lowest depreciation of the cedi since 1992.
According to him, although the COVID-19 pandemic has affected economies all over the world the Akufo-Addo government has ensured a low inflation rate thereby impacting the strength of the cedi positively.
Performance of the cedi
The currency performed marginally well within the first half of 2020, compared with other major currencies such as the US dollar and the Euro.
There were reduced export earnings coupled with limited revenue from the country’s oil reserves due to the impact of the COVID-19 pandemic.
Currently, the dollar is selling at GHS5.73. The British Pound gained 4 pesewas and is selling at GHS8.00 and the Euro is selling at GHS6.85.