Economist and University of Ghana lecturer, Patrick Asuming, has called for calm amid the recent depreciation of the Ghana cedi, maintaining that the currency remains fairly stable despite losing some value against major foreign currencies.
Speaking on Joy FM’s Super Morning Show on Monday, May 25, in response to a Reuters report on recent currency trends, Prof Asuming stated that the cedi’s decline has so far stayed within acceptable limits.
“Looking at the broader system, we have not witnessed extreme fluctuations. The Central Bank has managed to contain volatility, and overall, the depreciation has remained modest. For that reason, I do not believe there is cause for panic,” he explained.
He noted that concern would only become necessary if the cedi experienced intense and sustained pressure leading to steep depreciation within a short period.
“If the currency begins to face excessive pressure and records significant losses within a matter of weeks, then it becomes a serious concern because that is when stability starts to weaken,” he said.
Prof Asuming further emphasised that exchange rate movements are a normal feature of every economy and should be evaluated within the wider macroeconomic environment rather than viewed in isolation.
Source: myjoyonline.com
