A development economist with the University of Ghana, Dr Hayford Mensah Ayerakwa, has called on the government to negotiate with international firms and organisations to ascertain what quantum of their profit could be repatriated in foreign currency this season.
Ayerakwa believes this is crucial in sustaining the recent gains made by the cedi and also avert the perennial depreciation of the local currency.
The Ghana cedi has seen a shocking recovery against the US dollar as of mid-December – appreciating by 63.7%.
This comes as an unprecedented surprise, since just a few weeks ago the Ghana cedi was roughly battered by the US dollar in the foreign exchange market – suffering a year-to-date depreciation of 54.2% at the end of November, selling as low as GHC15 to US$1.
But data from the Bank of Ghana (BoG) indicates that as of 15 December 2022 the local currency wrestled the US dollar and appreciated by 63.7% in the process (now selling at around GHC8), thereby trimming down the year-to-date depreciation to 24.9%.
“We have to go back to the negotiation table, all these international organisations that operate in our country and have to take money out of the country, we need to see how much of their money you can take away in the foreign currency,” Ayerakwa said on The Asaase Breakfast Show on Tuesday (20 December).
“So, that we in a way can put some level of stability on the pressure that comes on our local currency,” he told host Kwaku Nhyira-Addo.
“As a country, I see this situation we find ourselves in as a blessing in disguise. For many years a lot of our structures and systems haven’t been to our benefit,” Ayerakwa added.
Listen to the full conversation in the attached video clip below:
Fred Dzakpata
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