Sunday, 23 June

Economist predicts continued depreciation of Cedi following multinational companies' exit

Bernard Oduro Takyi(BOT)

A Chartered Economist has foreseen a deepening depreciation of the Ghanaian Cedi following the departure of several multinational companies from the country. 

According to Mr. Bernard Oduro Takyi(BOT), the exit of entities like Dark and Lovely, Globo, Jumia, and Big Big, among others, will have a detrimental impact on the stability of the Cedi.

Speaking on Accra 100.5 FM's mid-day news,Mr Oduro Takyi projected a further decline in the value of the Cedi, particularly by June-July, attributing it to the absence of these multinational corporations. 

He emphasized that their departure would trigger a cascading effect on the currency, exacerbating existing challenges such as the government's Domestic Debt Programme and an imbalance between currency supply and demand.

Mr Oduro Takyi warned that the Cedi's value would likely plummet, with the exchange rate potentially reaching GHS 17 to one US Dollar by the specified timeframe. 

He lamented the absence of these companies, noting their past contributions in stabilizing the Cedi against foreign currencies.

Expressing concern over the repercussions of the multinational companies' exit, Mr Oduro Takyi emphasized the need for proactive measures to mitigate the adverse effects on the currency.

 He stressed the importance of addressing underlying economic factors to restore confidence in the Cedi's stability and prevent further depreciation.

Mr Oduor Takyi's prediction underscores the significance of multinational corporations in supporting currency stability and highlights the urgent need for strategic interventions to safeguard the Cedi's value amidst prevailing economic challenges.

Source: Mensah