Financial analyst Prince Obiri Yeboah commented on Ghana’s position as the fourth worst-performing currency among the top 150 currencies globally, stating that it comes as no surprise.
The economist and banker cautioned that Ghana’s currency is likely to remain one of the worst-performing due to ongoing deceitful political practices.
He noted that in Ghana, every monetary transaction is conducted in US dollars, leading to the depreciation of the local currency.
Mr. Yeboah highlighted that even our national budgets are denominated in dollars.
He expressed concern over the practice of paying workers, including athletes, in US dollars.
Recent data from Bloomberg shows that the Cedi depreciated by 0.2% to 14.9335 per dollar by the close of trading in Accra on Monday, June 10, 2024.
Since the start of the year, the local currency has lost 20% of its value against the US dollar.
The Cedi’s recent poor performance is attributed to increased demand for US dollars to purchase petroleum products, pharmaceuticals, and other imported goods.
Commenting on this, the economist said, “It is not surprising that Ghana’s currency has been ranked as the fourth worst performing currency globally. We will continue to be counted among the worst-performing currencies in the world because we always engage in the politics of deceit. This is a country where we use dollar-dollar quotations for designing our budget.”
“This is a country where our international hotels quote their charges in dollars. This is a country where people who work, i.e., the Black Stars, are paid in dollars. When the politicians are talking about this, they make it look as if we import so much from abroad, which is why our currency keeps depreciating. I have said this and will reiterate that if we continue to make these narrow arguments, we will continue to struggle.”
He explained that globally, over 70% of countries experience deficits in their trade balances.
“What this means is that when you evaluate the imports and exports of countries, the balance of trade is in deficit, including China, which is a major exporting country. Yet they have managed their affairs so that their local currency will not depreciate against other currencies.
He informed host Kwabena Agyapong that, as of 2022, the United States was the leading importing country, followed by France, Germany, the United Kingdom, and China in that order.
“In Africa, South Africa, Egypt, and Ivory Coast, all of them import more goods than Ghana. But what do we see about their currencies? I believe that we have failed to deal with the fundamental problems since the days of Adam, and so our currency will still be counted among the worst-performing currencies.
“We are not doing things right, and we are always trying to engage in the blame game and make excuses. As long as we continue to continue in that line, we shouldn’t expect anything different, and the cedi will continue to perform badly along with the competitors.”