Cedi was depreciating like Usain Bolt under NDC - VP Bawumia

The Vice President Dr Mahamudu Bawumia says incontrovertible data proves that the management of the exchange rate by the government is the best by any government in its first term in office since 1992.

Speaking at the Government Town Hall Meeting in Kumasi today (February 11, 2020), Dr Bawumia said the worst performances of the cedi trading against major currencies such as the dollar occurred under the management of the opposition National Democratic Congress.

He said the cedi depreciated at a pace that was as fast as world 100-metre record holder Usain Bolt under the NDC.

"In fact, in the history of the Fourth Republic, President Akufo-Addo has the best performance for any first-term government since 1992. Period. All the worst performances happened under the NDC which holds the record for first, second and third-worst performances in the fourth republic but they still want to challenge the best performer," Dr Bawumia said.

"The cedi exchange rate under the NPP (2017-2019) is twice as stable as it was under NDC (2013-2016) - average depreciation of 18% compared to 8.7%)," said Dr Bawumia.

"Under the NDC, our currency was depreciating at the speed of Usain Bolt! Under the NPP we have arrested the rapid depreciation of the cedi," added the Vice President. But why does the NDC, in the face of such incontrovertible evidence, keep insisting they can do a better job of managing the cedi?"

"Ladies and Gentlemen, it is like you take an exam with somebody and he scores 40% and you score 80% and he is trying to convince people that he knows the subject better than you."

"Mr Chairman I would like to take this opportunity to shed some light on the performance of the cedi under the NPP and NDC since 2008. At the end of 2008, the exchange rate of the cedi to the dollar was GHC1.18/US$. At the end of 8 years, the nominal exchange rate almost quadrupled to GHC4.2/US$," Dr Bawumia noted.

"But thus far under the NPP, the exchange rate has moved from 4.2/$ at the end of 2016 to 5.35/$ (Bank of Ghana). Indeed, for the NPP to match the almost four-fold Usain Bolt-like dash of the nominal level of the cedi exchange rate under the NDC, the cedi exchange rate will have to reach some GH15/US$!"

Cedi performance in 2020

Bloomberg adjudged the Ghana cedi as the best performing currency against the US dollar among 140 currencies.

According to Bloomberg, the cedi has so far appreciated by 3.4 per cent against the dollar as at Monday, February 3, 2020.

Analysts project that fortunes of the cedi are bright considering the country is on the verge of issuing a US$3 billion Eurobond which is expected to provide more dollar inflows that would further cushion the cedi from volatilities.

The local currency’s performance is a stark contrast to the 2019 performance where the cedi cumulatively depreciated by about 13 per cent.