A Nationa Nasara candidate for the New Patriotic Party (NPP) and a party financier, Alhaji Ahmed Zarruk Nuhu has descended heavily on the opposition NDC for making too much fuss about the depreciation of the Cedi.
According to him, the NPP remains the only political party with great economic brains who will put their intelligence to bear in ensuring that things go well.
He said the Cedi is gradually appreciating against the Dollar because of the economic interventions the Vice President and his abled-economic team are putting in place.
He said the hue and cry this year about the Cedi fall is not necessary, saying that the cedi is not that weak now.
In a telephone conversation, Alhaji Ahmed Zaruk Nuhu said the Cedi’s depreciation is not as bad as the NDC made to look.
He said, from ¢4.42 to the dollar in January 2018, the cedi in August 2018 is valued at ¢4.78 to the dollar at the interbank rates but is trading at ¢4.94 at some forex bureaux in Accra.
It is selling for ¢5 on the black market.
He said the New Patriotic Party (NPP) government should be commended for improving on the rate of the cedi’s depreciation, although Ghc5.00 is almost equal to one dollar.
Alhaji Nuhu said the rate of the cedi’s depreciation is much better as a result of some government actions, compared to the previous administration and that unlike in the case of the NDC administration at the time, the NPP’s economic fundamentals remain strong considering the rate of the cedi’s depreciation vis-a-vis the rate of inflation.
He also noted that when the rate of depreciation is higher than the rate of inflation, then the fundamentals are absolutely weak.
But If the country is able to achieve a rate of depreciation that is lower than the inflation, then the fundamentals are supporting.
“As at the time, we were having inflation rate less than 30%, and still we were depreciating by 31%. You can’t have a strong fundamental and at the same time, have an exchange rate depreciation that’s higher than your rate of inflation,” he said.
Comparing it to what is happening currently, Alhaji Ahmed Nuhu said the country is having a rate of inflation of around 9.8%, and we’re depreciating at less than 7%, less than that particular inflation rate which is an indication that the strong fundamentals that are anchoring the exchange rate are excellent.
He called on the so-called NDC economists who are only trying to confuse the people of Ghana to desist from the act since the Akufo-Addo led government is more than capable to deliver.
By PROSPER AGBENYEGA