The Chief Executive Officer of Dalex Financial Services, Ken Thompson insists that the cedi will continue to fall against major trading currencies and close at 6 cedis to a dollar by close of year.
[contextly_sidebar id=”oQmYFTAttSH4iBQfMcE7tklHJ3aruwee”]According to him the demand for dollars is still higher than supply.
Ken Thompson early this year predicted that the cedi will hit 6 cedis to a dollar by the close of the year.
The cedi this year alone has depreciated in excess of 25%.
The central bank’s intervention of pumping between 20 and 50 million dollars daily depending on the demand to halt the free fall of the cedi has still not yielded the needed results.
In an interview with Citi Business News Ken Thompson said the Eurobond and the cocoa syndicated loan will not save the cedi from further decline.
“When I made my prediction in February I remember the finance minister came on air the very next day and said that he agrees with me that the cedi has been over valued but he didn’t think it will fall to 6. Till now nothing has happened and changed for me to change my predictions. Also the cocoa crop has failed, the amount we expect from cocoa is going to be nowhere near what we expect therefore the supply demand situation has not changed.”
‘As I have said all the time is it is a demand and supply situation, our demand for dollars is more than the supply in the system and economics 101 tells you that the price is going to rise. But all the years there have been temporary fixes, there was the issue of the 20 million dollars per day how long that lasted am not sure’. He added.
Meanwhile the company has launched a new product called SWIFT according to Ken Thompson, the product was created to stimulate a savings and investment culture among Ghanaians.
“SWIFT is not only a contributory system that allows people to save from the little money they earn but also provides them an easy way of saving using their mobile phones. The account is your mobile phone number and becomes the individual’s account number which can be remembered all the time. The mobile-money platform provides a very convenient mode of transaction for users; hence the decision by Dalex to use that medium.”
SWIFT which is an acronym for “Safe Wise Investment For Tomorrow” provides a convenient and easy way for the ordinary Ghanaian to save at their own convenience using their mobile money accounts.
By: Norvan Acquah – Hayford/citifmonline.com/Ghana