Speculating against the cedi will be irresponsible – Oppong Nkrumah

Kojo Oppong Nkrumah is the MP for Ofoase Ayirebi. He is also the Ranking Member of Parliament’s Economy and Development Committee. He recently warned against cedi speculation.

On JoyNews’ AM Show, he spoke on May 29. He emphasized that his party will not undermine the currency, even in opposition.

He stated, “Speculating on the currency is not good.” He added that it would be irresponsible to engage in such behavior while in opposition.

Mr. Oppong Nkrumah recalled how others speculated against the cedi for political gain when they were in opposition. “Some people did it to gain power,” he noted.

He stressed that transparency from the government is crucial now. The government must clarify how it plans to maintain the cedi's recent gains.

“What matters is clarity on sustaining appreciation,” he said. Independent observers have explained factors contributing to this appreciation.

Market reactions depend on whether traders believe this appreciation can last. “The market will react based on sustainability,” he explained.

If traders think it's sustainable, they will respond positively. If not, their reaction will differ significantly.

He mentioned a recent opinion piece by David Ofosu-Dorte about fears of a currency dump. These fears can be addressed with clear communication about sustainability.

Ultimately, Mr. Oppong Nkrumah believes the market—not politicians—will judge government explanations. “Market watchers and traders will decide if explanations are sufficient,” he said.

He acknowledged economists' roles in shaping market expectations regarding the cedi's appreciation. They analyze reasons behind changes rather than accepting them at face value.

He reiterated that speculation is unhelpful and clear communication from the government is essential for proper market response. “I won’t speculate against the currency; it’s irresponsible,” he concluded.