Head of the Economics Department of University of Ghana, Prof. Peter Quartey, wants the central bank to take steps to end the speculative activities that he says is causing depreciation of the cedi against major trading currencies.
Prof. Quartey says speculative activities and interest rate hikes in the U.S is causing investors Ghana to move their funds elsewhere.
“When there is speculation in the news, false information, or expectation that can also affect the exchange rate. So in my view, what is happening to some extent is purely due to speculation,” he told Citi FM.
He wants the central bank to “put in more funds to stabilize the system, and I believe that is what they are doing. The central bank has to put in more forex.”
He has recommended that the Bank of Ghana provides adequate information to stem the speculative activities.
Between May and June this year, the local currency has experienced a 0.7 percent depreciation and now sells at GHS4.44 to $1.