Financial analyst at the Dalex Finance, Joe Jackson believes that the current free fall of the cedi will stabilize soon.
He says, there is impending shortage of the US dollar in the Ghanaian economy and that could help reduce the rate at which the cedi is losing ground to the US dollar.
The Cedi has been struggling against the major trading currencies especially the Dollar but Mr Jackson said more people are giving up on the Dollar, forcing them to rely more on the Cedi to trade.
This is most likely to help stabilize the Cedi against the Dollar, he said.
Mr. Joe Jacksom who Spoke on the Ghana Tonight show on TV3 with Alfred Ocansey on Wednesday October 19, said
“It is a tough time but I expect that the rate will slow down. The rate will slow down because at this moment, it is very hard to find dollars to buy and most of the people we have, are giving up on buying Dollars and are slowing.”
He also intimated that, he expects the government make strong case for reducing its expenditure which will halt the trend.
“I am also expecting that the government will soon announce measures that will indicate to the market that it is serious about the reducing its expenditure.
“The measures, the biggest one is going to be debt restructuring, when that happens I expect the rate of the Cedi depreciation to slow down.”
Stressing that, the dollar market will see major decline as government prepares to announce major domestic debt restructuring as part of the IMF conditionalities.
“Very soon there will be no dollars in the market and we are going to see some stabilization because the government will announce domestic debt restructuring package.”
The Ghanaian cedi has seen a major decline against the dollar in recent weeks.
According to some analyst, the cedi took a huge hit on October 20 losing some 13% percent in a single day.
Source: theGhanaianvoice.com