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Bawumia should be blamed for cedi depreciation - NDC MP

Dr. Mahamudu Bawumia has blamed the problem of dollarization in Ghana is due to macro-economic instability
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Member of Parliament for Bolgatanga Central Isaac Adongo says the fast depreciation of the cedi against some major currencies should be blamed on vice President Dr. Mahamudu Bawumia.

According to him, Dr Bawumia's claim that the previous National Democratic Congress (NDC) government did not account for a GHC7 billion expenditure drawn from state coffers between 2014 and 2016 has sent a wrong message to investors.

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Dr. Mahamudu Bawumia has blamed the problem of dollarization in Ghana is due to macro-economic instability.

He said the cedi is falling in value to major currencies because of incompetent management of the economy by the government, which is eroding confidence in the local currency.

But Mr Adongo said Dr. Bawumia should be blamed for the recent depreciation.

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"The first thing this government needs to do is to seriously advise the Vice President that he is no more a running mate but now a Vice President because certain utterances that he made in the past that affected Ghana in terms of inflow of resources, cost of borrowing, he could get away because he was in opposition but today if u make the same statements…you will find what is happening to the cedi."

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Despite moves by government to save the cedi from further fall, it appears the local currency is still struggling to keep its head above the water.

The dollar last week hit four cedis at forex bureaus across the country after rallying between 4 cedis 20 pesewas and 4 cedi 60 pesewas for some weeks now.

A lot of reasons has been assigned to the cedi’s poor performance this year but prominent among them is government’s high debt levels and the significant drop in the country’s foreign currency reserves.

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