Vice President, Dr. Mahamudu Bawumia, has said that the management of the cedi against other foreign currencies on the exchange front by the President Akufo-Addo led administration, has been one of the best by any government in its first term, since 1992.
According to him, the performance of the cedi in 2020 and 2021 has been handled superbly by the Economic Management Team.
Addressing a regional seminar of the Tertiary Students Confederacy of the NPP (TESCON) on 7th August, 2021, at the University of Cape Coast, Dr. Bawumia intimated that the stability of the cedi this year, has been the best compared to the same period after any election year, under the 4th Republic, notwithstanding the adverse effects of Covid-19.
He praised the Central Bank for the yeoman’s role it has played and continues to play to keep the cedi in check, saying “I doff my hat to the Central Bank for the work that they are doing in the management of the exchange rate. Cumulatively, from the beginning of the year to date, the exchange rate has depreciated by 0.6% against the US dollar, but it has appreciated by 3.6% against the Euro.”
For him, the stability that has been achieved, is expected to be maintained towards close of the year.
On the country’s International reserves, Dr. Bawumia made the point that even in the midst of Covid-19, the country’s international reserves position has increased to the equivalence of 5-months of import cover, a phenomenon, he said, represents one of the highest international reserves positions on record in the history of Ghana.
“This compares well with the stocks position of about 4.3 months of import cover last year.”
The Vice President, also told the students and lecturers that the country is experiencing a restoration of economic growth, that was lost during the peak of the Covid-19 pandemic last year.
He intimated that, notwithstanding the effects of the Covid-19 pandemic, the country is witnessing one of the lowest interest rates on record, in about two decades.
He noted that inflation, which at the heart of the pandemic, was around 11.8 % dropped to 7.1% in May, 2021 before inching up to 7.8% as at June, 2021.