Updated: Aug 26, 2020
“If the fundamentals are weak, the exchange rate will expose you”, these were the exact quotes of the then Vice Presidential Candidate Dr. Mahamudu Bawumia during his public lecture while in opposition. Speaking to this on Accra-based Peace FM, the Vice President disclosed that the fundamentals of Ghana’s economy are now strong as compared to what they inherited. “The fundamentals are now strong and the depreciation is around 2%. Since 1992 the cedi has not been this strong despite the devastating effect of COVID-19 globally”, he stated. He revealed that the cedi, though is currently ranging between GH¢5.7 against the US Dollar, it is within the range of the fundamentals. “We have been able to lock the cedi within the range of the fundamentals and the microfinance fundamentals are also in the best of shape”, he added. Last year, Dr Bawumia in responding to a similar question was quoted to have said “You will recall that I stated in 2014 that if the fundamentals are weak the exchange rate will expose you. That was true then and it is true now. It is 100% correct. So if the fundamentals are weak the exchange rate will expose.