The Running Mate to the New Patriotic Party (NPP) Presidential Candidate for the December general elections, Dr. Mahamudu Bawumia, has dismissed the what he described as ‘frivolous excuses’ being offered by the ruling NDC government for the rapid depreciation of the Cedi.?

Dr Bawumia
Dr Bawumia

According to Dr Bawumia, the cedi is falling in value to major currencies because of incompetent management of the economy by the government, which is eroding confidence in the local currency.

Government has at various stages blamed speculators, NPP traders and even the implementation of the Single Spine Salary Structure as responsible for the around 80% cedi depreciation to the dollar since 2009.

Recently the Vice-President Kwesi Amissah Arthur, explained that the rapid currency depreciation were “normal in election year” and that this year’s had been exceptionally better. He said this two weeks ago just before he left his job as Governor of the Bank upon his nomination for the vice presidency.

However, Dr. Bawumia urged the government to stop playing games with the serious job of managing the economy, saying that?the rapid depreciation of the cedi is clearly as a result of economic mismanagement and not elections. “The available data shows that clearly.”

The NPP Vice-Presidential Candidate stated that in 2000, which was the last year of the previous NDC government, an election year, the cedi depreciated by about 50%. In 2004, under the NPP, which was also an election year, the cedi depreciated by only 2.2%. In 2008, with record high crude oil prices and the economy under severe pressure from external economic forces, the currency fell by 20%.

He stressed that even with the Ghanaian oil economy of today not facing anything near the crisis encountered in 2008, the cedi is dropping faster, with the year not even over. ?”So clearly it can?t be due to elections but obviously if you mismanage an economy in an election year then you would have what we are seeing today?, he stressed.

Dr. Bawumia disclosed to the media that he felt obliged to make a statement and set the records straight because on his travels, he had realized that the continuing depreciation of the cedi, which had reached an 18-year low and has been the worst performing currency in Africa this year,, had become a matter of grave concern for the people, especially traders, service providers and industrialists.

The NPP Vice Presidential Candidate said that as a Ghanaian, he felt very sad seeing the spectacle of a rapidly depreciating cedi without any credible attempt to break the trend. He pledged that the NPP would bring back confidence in the economy and stabilize the cedi.

He said the NPP had done it before and will do it again, to remove the needless pressure and hardship that the falling currency has visited on businesses.


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