The Director of Financial Sector Division at the Finance Ministry, Sampson Akligoh says the Cedi has enjoyed some stability for the past three years.
The local currency has over the years been a subject of serious debate among political actors as it performed poorly against major currencies such as the US dollar.
Citing the year 2017, 2018 and 2019 as a case study, Sampson Akligoh said the government over the past three years has put in much work to ensure the stability of the local currency.
He spoke in reaction to the FX Development Committee which was set up by government recently to recommend on how to stabilize the cedi.
“And what I am saying is that if you look at 2017, you look at 2018, you look at 2019 and you take the average, in terms of comparison, this is one of the most stable periods of the currency and I am explaining to you that a lot of work has been done on day to day basis to stabilize the currency and I am trying to tell you that this committee which is the most important thing is looking into the future of the currency.
“It is not looking at the daily management of the currency because we need to make decisions that will ensure that we establish a near-equilibrium for the cedi.”
‘FX Committee not probing cedi depreciation’
The cedi last year depreciated by more than 12.7 percent, the worst performance since 2015 when the cedi depreciated by more than 14.6 percent.
Mr. Akligoh also said the recently inaugurated FX Committee is to help coordinate the various efforts by the government to stabilize the cedi and not to probe the depreciation of the cedi as has been reported.
According to him, the government has already done a lot to stabilize the cedi and the committee is only to help fashion out a long-term strategy that will ensure that the currency remains stable.
Speaking on the Citi Breakfast Show on Monday, Mr. Akilgu said the members of the committee were drawn from various sectors and associations who play various roles in the value movements of the currency.
“The government has already done a lot to improve the stability of the cedi. This committee is not investigating or going to stabilize, it is looking to the future. It is not about stabilizing the cedi today. This committee, which has a broader representation, is just to make sure that there is a coordination mechanism providing strategy to feed into ongoing work, and this in the long terms is going to establish the basis for the currency dynamics of the country,” he said.
He added that the committee would be working to inform the Economic Policy Coordinating Committee which is already leading efforts in ensuring a strong economy.
“This committee is bringing the players who are the cause of this seasonality so that we can fashion a strategy to inform the work of the EPC so that all the good work is being done can be properly coordinated. This would just feed into the work of the committee.”