Assets investment key to cedi Stabilization
By Nana Kwame Afrane Asante
Economic Contributor at Zed, Mr. Emmanuel Boateng, has recommended diversifying income streams and investing in stable assets as strategies to mitigate the direct impact of the cedi’s depreciation.
With the Ghanaian cedi appreciating slightly in the past days, consumers continue to feel its impact with surging price on goods and services.
Speaking during the Business Breakfast on Zed 101.9fm, Mr. Boateng emphasized that investing in assets that do not fluctuate easily, such as gold, is a key way to minimize the impact of the cedi’s depreciation.
“Inflation essentially will mean that prices have increased or gone up but, in this context, compared to January 2024, so in January 2024 last year what the prices of food was, has increased by some 23.5% this year”.
Mr. Boateng cited the case where a bag of rice which cost GH500 in January 2024 but could now rise to GH615, explaining how that may affect the consumer in the long run.
“That is how we make sense of it, he said and if your salary has not increased by some23.5% between January 2024to January 2025, then your ability to pay and ability to buy, your purchasing power has fallen. What that income or salary could have done in January 2024 has reduced by some 23.5% so it will not be able to do it any longer.
According to him this means prices have changed upwards or have increased by some 23.5% that is compared to January 2024, “That is what is happening now”, he stressed. In addition to that if your salary has not changed by the same proportionate increase then you are losing because your purchasing power, your ability to pay your ability to buy something has reduced by that proportion”.
