Governor of the Financial institution of Ghana (BoG), Dr Ernest Addison, has disagreed with assertions that the speed of the depreciation of the cedis towards the key buying and selling currencies particularly the greenback, has been excessive this yr.
Opposite to this declare that the speed is excessive, he stated, it’s somewhat low this yr in comparison with earlier years.
Answering questions throughout the Financial Coverage Committee (MPC) press in Accra on Monday, Dr Addison stated “I don’t assume I agree with you that the depreciation has been greater this yr.
“In the event you have a look at this yr, it’s a lot decrease than final yr yr.
“Final yr by now we had 3 per cent , so actually depreciation has been a lot decrease this yr . Clearly, you would possibly say that because the financial system is starting to recuperate there will probably be ore demand for international trade however I don’t assume that it ought to be represented as in its entirety to the outlook for the cedi.”
Cedi continues to indicate exceptional energy towards main currencies, particularly the US Greenback, the most recent report launched by Financial institution of Ghana signifies.
In accordance with the most recent Financial Coverage Report by the Financial institution of Ghana, the Cedi has proven a cumulative year-to-date depreciation of 1.7 % for 2021.
With this spectacular depreciation price, the Central Financial institution, and, certainly, analysts mission that the Cedi is prone to finish the yr 2021 with the bottom price of depreciation since 1992 and within the Fourth Republic.
The Cedi has proven stability up to now few years, bouncing again from its highest annual depreciation price of 31 % in 2014.
Whereas the Cedi depreciated at 12.9 % in 2019, it got here down to three.9 % in 2020, and with three months to finish 2021, the 1.7 % is the bottom depreciation in almost three a long time.
The Financial Coverage Report from the Financial institution of Ghana additionally indicated improved performances in some key sectors of the financial system whereas different sectors are nonetheless but to recuperate from the dampening results of the Covid-19.
The report confirmed a stronger pick-up in annual GDP progress to three.9 % within the second quarter of 2021, from the three.1 % recorded within the first quarter, and a 5.7 % contraction in the identical interval of 2020.
The report additionally indicated a optimistic outlook within the banking sector, which stays stronger and well-capitalized, with stronger progress in complete belongings, investments and deposits.
Whole belongings elevated by 16.7 % as at end-August. Profitability ranges of the banks stay excessive, with revenue progress pushed by elevated earnings progress.
By Laud Nartey|3news.com|Ghana
