The government of Ghana has attributed the cedi’s sustained appreciation against the dollar to investor confidence in the economy.
Kwaku Kwarteng Deputy Finance Minister, in an interview on Thursday said public confidence, together with some strategies government has put in place, is giving the cedi increase.
He explained, generally we are seeing stabilization in the exchange rate and I can only say that it is coming largely from the confidence that people have and the strategies that we have played out in our budget statement.
The Ghana cedi has been making some major increased in the past month and analysts have projected better gains in the coming months.
The cedi gained some strength after touching record a low of GHc4.7 to the dollar early March. The cedi was selling at GHc4.30 by the end of March.
By the first week of April, the cedi exchanged at GHc4.16 to the dollar in commercial banks. This has been seen as the local currency’s best performance against the U.S dollar on the last trading day in December 2016.
The performance has put the cedi’s appreciation against the dollar since the beginning of this year at around 0.41 %.
This is the first time that Ghana has witnessed such sustained appreciation against the dollar in the first four months of a year.
Mr Kwarteng said the stabilization is because people are beginning to see the direction of government’s economic policy and are beginning to have some confidence in the cedi.
However, he added that “a lot more has to be done and government has indicated that it will be procuring 70 percent of what it does from local entities and the idea is to ensure that we do not put too much pressure on our cedi.
He continued what it will take to stabilize our currency in a durable way will be to ensure that we work, export and get foreign exchange that is ours, we will export services that are ours then we know that we are dealing with this issue. So that going forward our currency will be strong.
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