Dr Mahamudu Bawumia, the Vice President, believes the management of the Cedi by the Akufo-Addo-led administration is one of the best since 1992 as far as its performance against other foreign currencies on the exchange front is concerned.
According to the “Economic Colossusss”, the Economic Management Team headed by him has worked hard to position the Cedi as one of the best-performing currencies between 2020 and 2021.
Dr. Bawumia stated at a regional seminar of the Tertiary Students Confederacy of the NPP (TESCON) on the 7th of August, 2021, at the University of Cape Coast, that the cedi’s stability this year has been the best compared to the same period after any election year under the 4th Republic, despite the negative effects of Covid-19.
“I doff my hat to the Central Bank for the work that they are doing in the management of the exchange rate. Cumulatively, from the beginning of the year to date, the exchange rate has depreciated by 0.6% against the US dollar, but it has appreciated by 3.6% against the Euro.”
“This compares well with the stocks position of about 4.3 months of import cover last year.”
Mr Bawumia also told students and lecturers that the country is resuming economic growth, which had been lost during the peak of the Covid-19 pandemic last year.
Meanwhile, Ghana’s public debt stock shot up by ¢27.8 billion in April 2021 and May 2021 to ¢332.4 billion, the latest Summary of Economic and Financial Data by the Bank of Ghana has revealed.
This is equivalent to $57.9 billion, about 76.66 per cent of Gross Domestic Product.
In March 2021, the total debt stock stood at ¢304.6 billion, and the significant increase in the debt stock is due to the $3 billion Eurobond raised in March 2021 as well as the huge borrowing on the domestic market.
In April 2021, the public debt stock was ¢328.0 billion. This means ¢23.4 billion new debt was added to the total debt stock.
Also, in 2021, the quantum of Ghana’s public debt if shared amongst citizens will have every citizen owe GH¢11,133 (approximately $2,000). The Cedi has depreciated further with 1 Cedi equivalent to 6 dollars.