[ 2017-03-09 ]

Depreciation of cedis not unprecedented – Oppong Nkrumah
New Patriotic Party (NPP) Member of Parliament for
Ofoase-Ayirebi, Kojo Oppong Nkrumah says the
current depreciation of the cedi being experienced
in the value of the cedis is not unprecedented.

He says the fall in the currency’s value in the
first quarter of the year is a recurring problem
that happens every year.

The value of the cedis is estimated to have
depreciated by 6 percent since the NPP took over
power in January this year, raising concerns among
business operators.

Quoting statistics from the Bank of Ghana (BoG)
Currency Monitoring reports (2000–2016), the MP
who is also a Member of Parliament’s Finance
Committee said the value of the cedis depreciated
at an average of 5 percent over the 16 year
duration.

Mr. Oppong Nkrumah attributes this to high levels
of importation as the previous year draws to a
close, and the practice of multinational companies
mobilizing their profit and repatriating it out of
the country at the beginning of the new year.

He said the value of the cedis depreciated by 18
percent in the first quarter of 2000, 11 percent
in 2009, 17 percent in 2014, and 15 percent in
2015.

“The average over the years for quarter one is
five percent. Nothing untoward has happened. My
fear is that in our bid to meet our own
exigencies, we may set a lot of panic in the
system. And I think we should stay away from
that,” he said.

Mr. Oppong Nkrumah was contributing to the debate
on the floor of parliament on the 2017 budget
statement delivered to the house last Thursday by
Finance Minister Ken Ofori Atta.

Mr. Oppong Nkrumah expressed confidence the 2017
budget statement has the capacity to fix the
economic challenges the country is currently
facing including high debt, expenditure overrun,
revenue underperformance, falling growth and
limited capital investment.

“The substantial problems that were identified
at the baseline of the budget have been
tackled,” he said.

Mr. Oppong Nkrumah also dismissed claims by the
minority that the planned scrapping of some taxes
will encourage the importation of goods and defeat
the plan by the current government to
industrialise.

“If you look at the taxes we are cutting; on
financial services, kayaye, raw materials, these
are not taxes that will stimulate imports. Indeed
these are taxes which when cut will take the
burden off the private sector to enable them be a
lot more productive, make profit and pay income
taxes,” he said.

The MP also commended the plan by the Finance
Minister to establish a National Entrepreneurial
Innovative Programme. He is confident this will
boost the culture of entrepreneurship and help
create jobs for young people.

He is thus rallying support from all sides of the
house for the 2017 budget statement. “This is a
good budget and my prayer is that we all support
it so the benefit accrues to the benefit of the
people of Ghana,” he said whiles concluding his
submission on the budget. 

Source - Myjoyonline.com

... go Back