Against all the fuss and recent speculations concerning the devaluing of the Ghanaian Cedi, Governor of the Bank of Ghana (BoG) Dr Henry Wampah, has announced that the Cedi would not be devalued.
These speculations arose after the Vice President Kwesi Amissah-Arthur who has also been governor of the Bank of Ghana recently suggested to countries in the Economic Community of West African States (ECOWAS) to look into the devaluing of the Cedi, so as to speed up the actualization of the merging of a collective currency – Eco for West African states. The CEO of Dalex Ken Thompson had also supported the suggestion and said the devaluing will enable the country allocate its resources appropriately.
However, to throw more light on what the Vice President had said, Dr. Henry Wampa said he was not directing the statement particularly to Ghana as there were countries that have fixed currencies.
“I think it was a general comment some people felt he was referring directly to the Ghanaian economy, some of the currencies are fixed- like the CFA Franc, it is fixed to the Euro so they have no control. The Nigerian Naira has also been fixed for a while so there is a big gap between the central bank’s rate and that of the market of the Forex bureau market,” he said.
The BoG Governor however, said it was unnecessary for Ghana to devalue its Cedi because at the moment, it is very market friendly and has responded well to market conditions. He made it clear that decisions to either devalue or not are made according to market conditions which has to do with the Cedi liquidity in the market, fiscal policy, monetary policy, etc. of which the Ghana Cedi is not found wanting on any of the aforementioned at the moment.
The convergence of ECOWAS’ Single Currency Programme has been on the To-Do list of the body for a long time now. Member states are expected to grow their economies by boosting manufacturing and services in their various sectors to enable them meet up to the set standard. It is said to have shifted from an initial launch date of 1 January 2015 to 2020 owing to what the group called non-fulfilment of financial responsibilities by member countries.