32.2 C
Accra
Thursday, May 30, 2024
Business"No joke! the fundamentals are definitely weak" - Finance lecturer on cedi...

Date:

“No joke! the fundamentals are definitely weak” – Finance lecturer on cedi depreciation

spot_img

A lecturer in the Department of Finance at the University of Ghana Business School, Dr. Benjamin Amoah, has unequivocally asserted that the fundamentals of the domestic economy are fragile.

He expressed concerns that the depreciation of the local currency, the cedi, coupled with elevated interest and inflation rates, are exacerbating rather than improving the situation, indicating a significant downturn in the economy.

- Advertisement -

During an interview on Joy FM, Dr. Amoah also decried the high unemployment rate prevailing in the country.

He said, “The fundamentals are definitely weak. We should not joke about it. The truth is that the fundamentals are very weak. What are the fundamentals here? What is the inflation rate as we speak now, and what has been the inflation rate over time? Very high. What is the interest rate, which is a fundamental factor? It is very high.”

- Advertisement -

“What is the unemployment rate now? The unemployment rate is very high. What is our balance of payment position? It is very negative, and these are the very fundamentals that are used in assessing the exchange rate,” the finance lecturer stated.

The cedi is currently trading at GH¢14.85 at various forex bureaus, with the inflation rate standing at 25.0%.

- Advertisement -

Financial and media company Bloomberg has forecasted further depreciation of the cedi by the year’s end.

Bloomberg predicts that the cedi will reach a value of GH¢15.98 against the dollar.

It’s worth noting Vice President Dr. Mahamudu Bawumia’s statement in 2014: “if the fundamentals are weak, the exchange rate will expose you.” This remark was made during a period of persistent cedi depreciation under the Mahama-led administration.

Latest stories

My next gov’t will bring 2,000 megawatts of solar power to boost energy mix – Bawumia

Vice President Dr. Mahamudu Bawumia has announced plans for...

US lab distances itself from toxicology test on Mohbad

The National Medical Services Laboratories in Pennsylvania, USA, have...

Labadi Beach Hotel, deemed ‘struggling’ achieved GHS158m profit in 2023 – Ablakwa

Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa,...

Ato Forson pushes for live broadcast of Ambulance case proceedings

Minority Leader Dr. Cassiel Ato Forson, who is the...

South Africa releases first election result

The initial results have been released for what are...

Related stories

My next gov’t will bring 2,000 megawatts of solar power to boost energy mix – Bawumia

Vice President Dr. Mahamudu Bawumia has announced plans for...

Labadi Beach Hotel, deemed ‘struggling’ achieved GHS158m profit in 2023 – Ablakwa

Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa,...

Ato Forson pushes for live broadcast of Ambulance case proceedings

Minority Leader Dr. Cassiel Ato Forson, who is the...

Ursula Owusu-Ekuful’s speech during presser interrupted by ‘dumsor’

During an address to the press, Communications and Digitalisation...

7 months pregnant woman battles for her life after husband’s cutlass attack

Seven months pregnant woman Madam Mesuna Adiza, a resident...

‘Hypocrite’ NDC MPs rejected $350m tax exemptions – Afenyo-Markin

Majority Member's of Parliament (MP) has accused the Minority...

LEAVE A REPLY

Please enter your comment!
Please enter your name here