Ghana’s government has set up a committee that has been tasked to investigate why the country’s currency the cedi keeps losing value.
For past couple of years, Ghana’s currency has lost record value against major trading currencies including the US dollar, Pound sterling and the Euro.
The cedi in 2019 depreciated by 8.6 percent which represents the highest among over 140 currencies tracked by financial experts.
The depreciation of the Cedi is a major issue in Ghana. It was a campaign issue in the 2016 elections with the current government promising to fix it.
But finding a solution to the problem seems daunting with the country’s manufacturing sector inactive.
Now the finance ministry is hoping the establishment of a committee, named the FX Development Committee will find answers to the issue.
Ghana’s deputy finance minister, Charles Adu Boahen said “The formation of this committee is not to infringe on the independence of the central bank in its foreign exchange operations.”
“The committee is also to critically look at the role of automation and digitization as a critical enabler of FX reforms,” Boahen added.
The committee is to be chaired by Ghana’s finance minister, Ken Ofori-Atta.
Last month Ghana launched new bank notes of 100 and 200 cedis as well as a new 2 cedi coin.
Officials said the move was also part of efforts to shore up the value of the local currency.
Source: Africafeeds.com
