Alexander Kwamena Afenyo-Markin, Majority Leader, has cautioned Ghanaian business owners and individuals against hastily converting their cedis to dollars, amidst the local currency’s depreciation. Instead, he recommends investing in treasury bills or fixed deposits.
The cedi has weakened by 10% against the dollar since the Monetary Policy Committee’s decision to keep borrowing costs unchanged in March, making it the worst-performing currency globally over this period. Inflation has averaged 25% concurrently.
Afenyo-Markin warned that a similar situation in 2022 resulted in significant financial losses for many who rushed to exchange their cedis for dollars. He encouraged businesses to adopt a more cautious approach, citing the government’s previous success in managing high rates through prudent economic policies.
The comments come amid accusations of economic sabotage by the Minority caucus, which the Majority denies. A $360 million disbursement from the International Monetary Fund, expected by the end of June, may help stabilize the cedi. Ghana is restructuring its $42.2 billion debt as part of the conditions for a $3 billion IMF program.”
By Eugene Davis
