Ghana Cedi is 3rd strongest currency in Africa – Owusu Bempah

A Deputy Director of Communications for the New Patriotic Party (NPP), Ernest Kofi Owusu Bempah Bonsu, has described the Ghana Cedi as the third strongest currency in Africa.

According to him, referencing the rate at which other currencies are depreciating against the dollar will prove that the Cedi in terms of value is indeed the third strongest currency in Africa.

He further challenged ‘unbelievers’  “to name any currency in Africa that is stronger than the Cedi apart from the Tunisian Dinar and Libyan Dinar.”

His comments come after the Ghana Cedi slumped further against the dollar and was tagged as one of the worst performing currency in the world.

While noting that the country is basically facing similar issues today with the relative weakness of a number of currencies, as experienced in the Mahama era, he said “it is about time we stop the propaganda and the politicisation of currency management.”

Mr. Bempah maintained that inspite of the fact that the cedi experienced marginal year-to-date depreciation against the US dollar in 2022, the cedi appears to be the star performer in emerging economies’ currencies strength against the dollar.

“As a matter of fact, situating the Cedi’s performance in context, it is trite that the exchange rate of the cedi to the US dollar remained relatively stable when compared with movements in other currencies against the US dollar,” he added

He believes it is only the Euro and UK Pound that appear to have performed better than the cedi against a resurgent US dollar.

“A simple google check and referencing the rate at which other currencies are depreciating against the dollar will have shown that the Cedi in terms of value is indeed the third strongest currency in Africa.

“All said and done, it is clear that the NPP government have managed the exchange rate much better than our predecessors and also much better than many other countries this year,” Ernest Owusu Bempah insist.

Read the full statement below:

Stop the dishonest misinformation: the Cedi is the third strongest currency in Africa

The debate around the depreciating cedi has been going on for sometime now but the distortions are getting in the way of the facts.

Before I expose the flaws of the NDC propaganda, let me be upfront and go back to the Mahama era in 2014, and here was the voice of popular preacher Nicholas Duncan Williams as he offers up a prayer for the recovery of the Ghanaian currency:

“I hold up the cedi – and I command the cedi to recover! I declare the cedi will not fall any further. I command the cedi to climb. I command the resurrection of the cedi! In the name of Jesus I command a miracle for Ghana’s economy!”

That is just one indication of how seriously the fall in the value of the cedi against major foreign currencies was regarded in the past.

Indeed, the cedi fell to a record low on foreign exchange markets when the United States scaled back its stimulus program and investors ran shy of emerging markets. Ghana’s central bank responded by raising its main interest rate by 2 full percentage points on February 6, 2014 and the government tightened foreign exchange controls.

We’re basically facing similar issues today with the relative weakness of a number of currencies, including the cedi, against the dollar, to measures being implemented by America’s Federal Reserve. As a matter of fact the measures put in place by the Federal Reserve has caused some shock spillovers to many emerging markets, causing their currencies to depreciate at rates and magnitudes higher than the cedi. Other countries that have experienced challenges with the dollar include the Argentina Peso which has depreciated by 50.2%; the Turkish Lira by 42%; the South African Rand by 19.2%; the Indian Rupee by 11.2%; the UK Pound by 4.29% and the Euro by 4.2%.

As a matter of fact, situating the Cedi’s performance in context, it is trite that the exchange rate of the cedi to the US dollar remained relatively stable when compared with movements in other currencies against the US dollar.

Yes, inspite of the fact that the cedi experienced marginal year-to-date depreciation against the US dollar in 2022, the cedi appears to be the star performer in emerging economies’ currencies strength against the dollar, and only the Euro and UK Pound appear to have performed better than the cedi against a resurgent US dollar.

A simple google check and referencing the rate at which other currencies are depreciating against the dollar will have shown that the Cedi in terms of value is indeed the third strongest currency in Africa.

I challenge the propagandists and the naysayers to name any currency in Africa that is stronger than the Cedi apart from the Tunisian Dinar and Libyan Dinar.

It is about time we stop the propaganda and the politicisation of currency management.

All said and done, it is clear that the NPP government have managed the exchange rate much better than our predecessors and also much better than many other countries this year.