{"id":9310,"date":"2019-09-20T08:42:52","date_gmt":"2019-09-20T08:42:52","guid":{"rendered":"https:\/\/www.nsemgh.com\/?p=9310"},"modified":"2019-10-26T17:58:13","modified_gmt":"2019-10-26T17:58:13","slug":"cedis-drastic-appreciation-wont-be-good-for-economy-expert","status":"publish","type":"post","link":"https:\/\/www.nsemgh.com\/2019\/09\/20\/cedis-drastic-appreciation-wont-be-good-for-economy-expert\/","title":{"rendered":"Cedi\u2019s drastic appreciation won\u2019t be good for economy \u2013 Expert"},"content":{"rendered":"

Economist,\u00a0Prof. Eric Osei Assibey has observed that a drastic appreciation of the cedi \u2013 which is highly doubtful — won\u2019t benefit the local economy.<\/p>\n

Prof. Assibey explained that, should the cedi appreciate from its current GH\u00a25.51 against its major trading partner, the dollar to GH\u00a21 to $1, it would be detrimental to the country\u2019s export revenue.<\/p>\n

Speaking on JoyNews\u2019 PM Express programme<\/b>, the University of Ghana lecturer said this \u201cwould lead to loss of foreign customers by local producers.\u201d<\/p>\n

What it means<\/b><\/p>\n

Should a local producer of cocoa drinks export one bottle of drink for the trading price of $1 dollar, they get GH\u00a25.51 currently.<\/p>\n

\"exchange<\/p>\n

But should there be such drastic appreciation, the same producer would only end up with GH\u00a21 for every $1 of a bottle of cocoa drink exported, resulting in a loss of more than GH\u00a24 per bottle.<\/p>\n

To avert this, Prof. Assibey explains the producers must increase their prices which then would drive the customers to cheaper markets.<\/p>\n

\n
<\/div>\n<\/div>\n

It would only be a matter of time before the local market takes a hit and \u201cforeign exchange would not come in and when that happens, you won\u2019t be able to create employment for your people.\u201d<\/p>\n

\"Prof
\nProf. Eric Osei Assibey<\/b><\/i><\/p>\n

He explained that an appreciation would, however, benefit importers. But when you import more, \u201cit deteriorates your balance of payment,\u201d he said.<\/p>\n

According to the economist, the only way out of these two situations is to maintain the stability of the local currency.<\/p>\n

Currency manipulation<\/b><\/p>\n

Countries with a high export rate are of greater advantage if their currency is weaker compared to that of their <\/b>trading partners\u2019.<\/p>\n

China, a major exporter has a relatively weaker currency to the dollar, standing at over 7 Yuan currently.<\/p>\n

US President\u00a0Donald Trump accused the Asian giant recently of deliberately manipulating its currency.<\/p>\n

A weaker yuan makes Chinese exports more competitive, or cheaper to buy with foreign currencies, the BBC reported.<\/p>\n

The People’s Bank of China (PBOC) said the slump in the yuan was driven by “unilateralism and trade protectionism measures and the imposition of tariff increases on China”.<\/p>\n","protected":false},"excerpt":{"rendered":"

Economist,\u00a0Prof. Eric Osei Assibey has observed that a drastic appreciation of the cedi \u2013 which is highly doubtful — won\u2019t benefit the local economy. Prof. Assibey explained that, should the cedi appreciate from its current GH\u00a25.51 against its major trading partner, the dollar to GH\u00a21 to $1, it would be detrimental to the country\u2019s export […]<\/p>\n","protected":false},"author":8,"featured_media":5436,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_post_source_name":"","_post_source_url":"","footnotes":""},"categories":[61],"tags":[11261,7207,7358,10766,2735,5059,1998,7421,946,5195,11180,5196,192,12138,12773,3874,6411,8384,10742,11973,12178,2627,3805,12103,10390,1999,8383,9031,10329,13307,214,963,6348,11331],"class_list":["post-9310","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-accused","tag-asian","tag-bank","tag-bank-of-china","tag-bbc","tag-cedi","tag-cedi-stability","tag-chinese","tag-cocoa","tag-dollar","tag-drink","tag-economy","tag-ghana","tag-import","tag-increase","tag-lead","tag-lecturer","tag-local-economy","tag-market","tag-one","tag-osei-assibey","tag-pm","tag-president","tag-price","tag-prices","tag-prof-assibey","tag-revenue","tag-tariff","tag-trade","tag-trading","tag-university","tag-university-of-ghana","tag-us","tag-us-president"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts\/9310","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/comments?post=9310"}],"version-history":[{"count":0,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts\/9310\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/media\/5436"}],"wp:attachment":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/media?parent=9310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/categories?post=9310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/tags?post=9310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}