Gabby Asare Otchere-Darko, a leading member of the New Patriotic Party (NPP), has advised the media to stop fueling speculation over the Ghana cedi’s devaluation versus the US dollar.
While it is not the responsibility of journalists and experts to repair the cedi, he believes that fueling speculation in media stories and comments would not improve the local currency’s fate.
Director of Operations at Dalex Finance, Joe Jackson, called Gabby Asare Otchere-Darko’s comment as ”ridiculous”.
“How can you look at this currency’s fall and say we shouldn’t talk about it? The cedi’s importance as a store of value has dwindled. If I had GH600 at the start of the year, it would have been $100. Today, it is $40. As a country that imports practically everything, this translates to a loss of 60% of our purchasing power.”
“I don’t think anyone who can afford it should keep their money in cedis. Everyone wants to buy dollars, but there are none available since we haven’t suddenly raised the number of dollars available. As a result, the limited money available are going to the top bidders at greater rates. That is why we have this situation.”
He believes the only way to go is to take significant steps to restore stability.
”That significant movement will occur possibly when we get the IMF deal done or when the government shows clearly that it is going to reverse its mindset and cut expenditure in a significant way.”