KSM: Bawumia Was Honest When He Said Exchange Rate Exposes Fundamentals Of Economy

“When the fundamentals are weak, the exchange rate exposes you”, is a statement made by Vice President Mahamadu Bawumia in 2014 while his party was in opposition and seeking to clutch power in 2016.

At the time, the cedi was suffering from a free fall.

Today, the Ghana cedi is facing a similar challenge and Ghanaian satirist, Kwaku Sintim-Misa known as KSM, has brought the statement back.

“You thought he was doing propaganda”, he began referring to Bawumia, “Now you know HE WAS SPEAKING THE TRUTH ”.

Last week, the Bank of Ghana reported that the performance of the cedi had improved after depreciating by 37.5 per cent against the US dollar, 24.1 per cent against the pound, and 27.5 per cent against Euro since January 2022.

But over the weekend, a dollar fared at GHc11.2p.

Similarly, the 1 pound clocked ¢12.5 with 1 Euro going for ¢10.57.

While responding to the opposition National Democratic Congress (NDC) when it tried to use the statement against him in 2019, Bawumia indicated that not all depreciation is caused by weak economic fundamentals.

“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 true now. It is 100% correct. If the fundamentals are weak the exchange rate will expose you but it is a warped logic to jump from that to a conclusion that if there is depreciation in your currency then the fundamentals must be weak”.

Source: opemsuo.com/Hajara Fuseini