Cedi gains: It’s not some magic trick from NDC government, nor is it from the past NPP government – Ken Agyapong

Businessman and former Member of Parliament for Assin Central, Kennedy Agyapong has refuted assertions that the recent appreciation of the Ghanaian cedi is due to government policies.

He argues that global factors, particularly the U.S. trade war are driving the change.

During a recent public gathering, Agyapong said the cedi gains cannot be credited to the NDC or NPP.

"Today we are discussing the dollar. I hear it in the news everywhere," he stated. "Economists will tell you, if they are being honest and not engaging in political games. It’s not some magic trick from the NDC government, nor is it from the NPP government that is causing the dollar to decrease."

Agyapong explained that Donald Trump’s policies have affected global demand for the dollar, with a diminished desire for the currency contributing to its current situation. "It is Trump and his policies regarding the global economy. People are not demanding dollars as they once did. So the dollars are just sitting there," he elaborated.

He also pointed out that with the U.S. now facing fierce economic competition from China, global markets are shifting their focus, which is leading to a decrease in demand for the dollar.

"So whatever they are claiming, if Trump and the world unite again, you will see that our country has not implemented any policies that would lower the dollar. What you are witnessing is temporary," he cautioned.

Agyapong characterized the current gains in the exchange rate as unsustainable and urged a realistic approach in public discussions about the economy. "It is not any economic experts in this country that are causing the cedi to rise and the dollar to fall. It is the wealth market, they are simply not demanding dollars as much as they used to. This is the reason there is no competition, and the supply of dollars is surpassing the demand. It's as straightforward as that.

"Encouraging Ghanaians to be wary of political rhetoric surrounding the matter," he continued.

He stressed, "These are fundamental economic principles. Therefore, we must be cautious about what is being said regarding interest rates and similar topics. It's not sorcery. The global economy is deteriorating, and the demand for the dollar has decreased."