The Deputy Managing Director of Societe Generale Bank, Ghana, Ernest Kuetche, is urging the government to keep the local currency stable against major trading currencies such as the US dollar.
Despite its constant struggles, the local currency, according to the Bank of Ghana, has appreciated about four percent in value against the dollar since the start of this year.
Speaking to the media after presenting cars to three winners of its 2019 deposit and win promotion, Mr. Kuetche urged government to continue its prudent policies to ensure the cedi’s performance is sustained even beyond the election year.
“I think the government has already taken good measures on this. I think it is the reason why we believe it has helped stabilize the cedi. In 2019, the depreciation was quite significant. It was quite high. In the first two months of 2020, we have seen some appreciation of the cedi.”
“This is overall a good stabilization. The key concern is the fact that always in election years there is a bit of uncertainty. But from what we have seen in the first two months of the year, it doesn’t seem to be the case. If the government continues in the same direction as the Bank of Ghana, I have no doubt things will continue to have a positive outlook,” he added.
Performance of the cedi this year
The local currency has enjoyed a good run against its major trading partners in the first month of the year, appreciating against all the three major currencies, the dollar, euro and pound sterling, according to data released by the Bank of Ghana.
The cedi, which depreciated against all the three currencies last year, has found a renewed strength and has so far held its own to make gains on its trading partners.
According to the Bank of Ghana’s Summary of Economic and Financial Data, the cedi in the first month of the year has so far appreciated 0.3 percent against the dollar, made a 1.9 percent gain on the British pound, while recording a 2.3 percent appreciation against the Euro.
Last year, the cedi depreciated 12.9 percent, 15.7 percent and 11.2 percent against the dollar, pound and euro respectively.