Business General

Inclusion of Minority in cedi depreciation probe disappointing – Nyamah

A Deputy Director of Communications of the New Patriotic Party (NPP), Richard Nyamah has expressed disappointment in the Finance Minister’s decision to include National Democratic Congress (NDC) Members of Parliament as part of a bi-partisan committee to investigate the structural challenges facing the cedi.

The Finance Minister in a statement to parliament last Thursday announced that he together with the Central Bank Governor had been tasked by the President to look into the causes of cedi depreciation and thus a committee would be in constituted to accomplish the said task.

But speaking on Citi FM’s News Analysis Programme, The Big Issue, Richard Nyamah said the opposition does not have any alternative to offer in resolving the challenge.

“We did not have to go to the NDC on this matter. I do not see the need and I do not buy it. I am sorry to disagree with the Finance Minister and anyone who thinks this is a good idea. In the first place they will play politics with it.

“Whatever results come they will pooh-pooh it. I have seen Oye Lithur virtually pooh-pooh the Finance Minister and his credentials but you look at the fundamentals and they are largely good over the period. The NDC between 2012 and 2016, depreciated the cedi over 45, 46% so why will you want to have them on the table to discuss the depreciation of the cedi. What they will bring to you is how to spoil it and we want to talk about how to take it up. I am very disappointed!”

Committee to probe cedi depreciation needless – Economist

An Economist, Ebo Turkson has also said the setting up of the committee is needless.

Dr. Turkson believes a committee is unnecessary since the causes and solutions to the depreciation are obvious.

“I do not think the setting up of a committee to look into why our currency depreciated so fast will necessarily solve the problems we face in the economy. I’ve mentioned that we know what the problems are . We know why our economy is structurally is import dependent.

“We hardly produce anything to consume and therefore we are overly dependent on import so every now and then we are having an increasing demand for forex so our currency depreciates. If you want to find out the causes of the sudden depreciation of the cedi, the Central Bank is aware of why that happened. So if you ask me , I do not think the setting up of a committee is what we need now,” he said.

The cedi was initially trading at GHc 5.80 to a dollar but it began gaining strength this week after a government intervention which was actually expected to yield evident results within two weeks.

A former Deputy Finance Minister under Mahama administration, Fifi Kwetey has, however, said the recent appreciation of the cedi is only temporary and will depreciate again.

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