NPP has the men to stabilise the cedi – Justin Frimpong Kodua

Justin Frimpong Kodua, the General Secretary of the New Patriotic Party (NPP) has reiterated that the ruling government has the competence to tackle the current cedi depreciation.

He said Ghanaians should have some confidence in the Nana Addo Dankwa Akufo-Addo administration to turn the tide with the exchange rate.

During a panel discussion on Peace FM’s morning show ‘Kokrokoo,’ the General Secretary of the New Patriotic Party (NPP), Justin Frimpong Kodua, addressed the current economic situation.

He acknowledged the depreciation but expressed confidence in the government’s ability to stabilise the currency.

“When the Cedi started depreciating last year, we were able to put measures in place to stabilise it. Even though it has started depreciating again, I can assure you that we have the competent men to deal with it,” Mr Kodua stated.

The depreciation of the Cedi has raised concerns among Ghanaians, as it directly affects the cost of living and the overall economic stability of the country. The fluctuating value of the Cedi impacts businesses and consumers alike, leading to increased prices for essential goods and services.

Mr Kodua’s comments reflect the NPP’s stance on economic management and their commitment to addressing the challenges posed by the depreciation. He reassured the public that the party has the expertise and strategies necessary to mitigate the effects of the depreciation and restore stability to the economy.

Relatedly, the Minister of Finance, Dr. Mohammed Amin Adam has also assured that the cedi will be stabilised by the government.

Addressing the media in Accra at the Monthly Economic Update Series, he said but for the recent pressures, the local currency had been largely stable, with the depreciation of the cedi against the US dollar halving from 54.2 per cent at the end of November 2022 to 27.8 per cent at the end of December 2023.

He said the cedi’s stability had continued into 2024, with a cumulative depreciation of 14.2 per cent as of May 20, compared to 20.7 per cent recorded in the same period in 2023.

“We expect the cedi’s stability to improve into the medium term as we complete debt restructuring, make more progress on fiscal consolidation and improve our reserves over the medium term.

“The recent pressures we are observing on the cedi is largely on the back of the strengthening of the US dollar against major trading currencies, seasonal forex demand, including elevated demand from corporate institutions, payment to contractors and independent power producers; high cedi liquidity and speculation,” the minister said.

As part of measures to address the depreciation of the currency, he said the government was fast-tracking the fiscal consolidation processes through rationalisation of spending and enhancement of revenue mobilisation.