[ 2016-01-26 ]

Ghana won't benefit from Cedi devaluation - Pianim
A renowned economist, Kwame Pianim has described
as valueless any attempts to devalue the
country’s currency.

According to him, it will make no impact on our
current state of affairs, adding that it will not
bring Ghana any economic benefits.

This follows earlier calls by CEO of Dalex
Finance, Ken Thompson for the Cedi to be
devalued.

Vice President, Kwesi Amissah Arthur last year
also revived the debate on the issue, when he
advised West African countries to consider
devaluing their currencies to ensure stability and
speed up plans to form the single currency zone.

Some Financial analysts also believe that
devaluing the Cedi would help boost the local
industry.

The Governor of the Bank of Ghana, Henry Kofi
Wampah has, however, dismissed the calls for the
devaluation of the cedi.

Speaking on Business Brief with Paa Kwesi Asare,
Pianim said a country like Ghana, whose economy is
commodity-based with fixed gold, cocoa and oil
prices, will gain nothing from the devaluation.

“I don’t see the benefit of devaluation for a
commodity-based economy, which is not
manufacturing,” Mr. Pianim said.

Devaluation means official lowering of the value
of a country's currency within a fixed exchange
rate system, by which the monetary authority
formally sets a new fixed rate with respect to a
foreign reference currency.

Source - Starrfm

... go Back