Politics

Cedi depreciation has been lower under current NPP govt – Bawumia

The New Patriotic Party (NPP) flagbearer, Dr. Mahamudu Bawumia, claims that the value of the Cedi today is higher than it was during the NDC administration.

Dr. Bawumia reiterated his position on the Cedi’s arrest in an interview with AfricaWatch, stating that the value of the Cedi has increased comparatively well under Akufo-Addo’s administration.

In contrast to the NDC’s management, he continued, the depreciation of the Cedi has remained sustainable in spite of the present global economic difficulties.

“Why not? We use averages to measure progress in statistics and economics all the time. It is a valid comparison of the management of the exchange rate under our government versus under the NDC government. The point is that notwithstanding the major global and domestic challenges we have been through, it is remarkable that whereas the exchange-rate depreciation between 2009-2016 averaged 13.9%, between 2017-2023 it averaged 13.1%. That is a fact,” Dr Bawumia stated.

Cedi depreciation has been lower under current NPP govt – Bawumia

“The data shows that from 2009-2016, the cedi depreciated cumulatively by 71.1%, and between 2017 and 2023, the cumulative depreciation was 64.6%. So, whether you look at the average or the cumulative, the depreciation of the cedi has been lower under our government, notwithstanding the severe global shocks we have endured. That is the basic truth.”

In addition, Dr. Bawumia supported a remark he made in 2016 during the NPP campaign, confirming that an exchange rate might reveal a government when its foundations are weak.

He blamed the nation’s present exchange rate on a number of international issues, including the COVID epidemic of 2019 and the Russia-Ukraine war.

“Absolutely! It is still true, and I will continue to stand by that statement. We saw that between 2017 and 2021 when the fundamentals in terms of the fiscal deficit, inflation, GDP growth, external balances, and international reserves were fairly strong, the exchange rate was relatively stable.

“But following the COVID-19 pandemic, the Russia-Ukraine war, the banking-sector crisis, the excess-capacity energy payments, and the lack of access to international capital markets, the fundamentals of the economy were weakened, and the fiscal deficit and debt levels increased.

“Inflation reached some 53% at the end of 2022 and you saw the exchange rate depreciate by some 30% in 2022. The fundamentals have strengthened recently, with the declining fiscal deficit, declining inflation, improved external reserves, and so on, and this has resulted in relative stability of the exchange rate. So, my statement still holds true.”

Akosua Boatemaa

I'm Yours Truly, Blogger Akosua Boatemaa. I'm here to feed Your eyes and Ears with Authentic News Updates.

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