Cedi decline: Ghana's fragile economy can't withstand external shocks, according to WiF

Cedi decline: Ghana's fragile economy can't withstand external shocks, according to WiF Featured

According to Gifty Annor-Shika, CEO of Women in Forex-Ghana, Ghana's weak economic fundamentals are to blame for the cedi's depreciation against other major currencies.
Reputable economists have forecast that the value of the Ghanaian cedi relative to the US dollar will decline significantly. The situation, they continued, will dramatically increase revenue risks for foreign investors who rely on the repatriation of income, and their prediction is coming true. The cedi is currently edging closer to GHC10.00 for each US dollar. However, Madam Annor-Shika noted on the GHOneTV current affairs program State of Affair that Ghana's economy was resilient enough to withstand recent global crises like the war in Russia and Ukraine and others. "As the saying goes, the exchange rate will reveal you when the fundamentals are weak. Therefore, there are many financial and monetary positions that are detrimental to the economy. causes that are international or foreign, such as the Covid and the Ukraine War "Basically, the Ukraine War and Covid Sort of Exposed Our Weaknesses since We Have Weak Fundamentals. It seems more like those shocks were too much for our shock absorbers to handle. She added that since depreciation is a recurring problem, the country needs a comprehensive strategy to address it as well as the mobilization of income and a decrease in imports. "So that will imply that more businesses should start up in the nation to produce goods created in Ghana, among other things. Most likely, we can also make our indicators for debt affordability better. "The issue is not structural; we require physical planning, the reduction of spending, borrowing, and similar activities. Instead than borrowing money, the government needs to increase revenue.
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