Policy analyst Dr. Peter Tekper has attributed the recent depreciation of the cedi to speculative activities and a general “wait and see” posture in the market. He explained that doubts over the currency’s stability have compelled many businesses and individuals to hold on to the US dollar.
He therefore called on the Bank of Ghana to stabilize the exchange rate at 12 cedis to 1 US dollar, in line with a directive from the President, while urging the continuation and intensification of measures to curb dollarization.
In an interaction with ABC News GH, Dr. Tekper highlighted that “those who are transacting in dollars stopped because they assume the cedi will depreciate soon thus will benefit their dollar transaction.”
He stressed that this perception, though speculative, has had a major impact on the performance of the local currency in recent weeks.
According to him, people do not trust that government will be able to sustain the appreciation, leading them to wait for the dollar to rise before remitting funds for their activities.
He cautioned that this situation, if unchecked, could further erode confidence and worsen the exchange rate pressures already confronting the economy.
