Financial consultant Patrick Baah Abankwah has stated that the value of Ghana’s currency could get worse due to the election year and the results of the elections.
In a chat on SVTV Africa with DJ Nyaami, Patrick explained that many foreign investors hold onto their investments during election year due to the fear of electoral disputes. As a result, the cedi’s value depreciates affecting all aspects of the economy.
“Foreign investors fear to invest in election year and it puts a lot of pressure on our currency because everything in this country depends on the dollar. That’s why prices increase daily.
The cedi could stay still. But the danger is that when the government in power loses, they make a mess of things because they’ve been voted out. Inflation could rise and affect the next government. Election creates uncertainty in the country and affects the economy,” he said.
Speaking on the constant depreciation of the cedi this year, Mr Abankwah said, “Almost every year, the gov’t borrows money in dollars and pumps it into the system for the cedi to stabilize. But we can’t borrow now due to the debt, that’s why the cedi keeps depreciating.
Kindly watch the full interview below;
