Economist and senior lecturer at the University of Ghana Business School, Professor Patrick Asuming, has expressed concern about the recent sharp appreciation of the Ghanaian cedi, cautioning that such rapid currency movements - even when positive - can create economic volatility and uncertainty.
Speaking on the cedi's recent performance on Channel One TV's The Big Issue on Saturday May 17, Prof.
Asuming noted that while a stronger currency may seem beneficial, the pace at which the cedi has appreciated in recent weeks is problematic. "I will largely agree that the appreciation perhaps has gone a little too far," he said. "But even more importantly, I think that making the currency appreciate so quickly or so sharply over a short period - I'm not sure it's a clever thing to do." He argued that sudden appreciation can be just as destabilising as rapid depreciation, as both create uncertainty for investors, businesses, and consumers. "When the currency depreciates quickly or appreciates sharply, you see the concerns that come with uncertainty.
In some sense, it's the same thing that's happening." Prof.
