BRexit...ECOWAS Is Not EU; Cedi Will Strengthen Against Major Foreign Currencies - Seth Terkper

Finance Minister Seth Terkper has responded to the exit of Britain from the European Union (EU) and the consequences of the exit on Ghana's economy and Africa. The Finance Minister has earlier indicated that Ghana is considering other markets aside the European and American bonds markets in order to maximize the country's output. However, speaking in an interview with Kwami Sefa Kayi onPeace FM's 'kokrokoo', Seth Terkper allayed the fears of citizenry stating that Ghana is a member of the Economic Community of West African States (ECOWAS). According to him, ECOWAS is not the European Union. Hon. Terkper outlined some benefits of being part of ECOWAS to the Ghana's economy and member States. He explained that the ECOWAS system permits Ghanaians to engage in a trade in any of the neighbouring countries with ease. He further noted that with ECOWAS, citizens within members States have no need for a VISA before they enter the neighbouring countries. Hon. Terkper disclosed that member States are considering using a single currency that will be called Eco, in transactions between the member States. “ECOWAS is our EU. Ultimately, that’s what we’re aiming to achieve. To have a single currency, in our case called Eco you know as we have the Euro. Where are we now on ECOWAS? We have free movement of people, goods. I think that majority of countries now have the ECOWAS passport…free movement means that Ghanaians can go to Nigeria without a VISA. They only have to show their passport at the border to show that I’m an ECOWAS citizen.” Hon. Terkper also explained the implications of Britain's exit from EU, saying the exit means that Britain is no longer bound by the activities of the Union and so stands on her own. He added that it was easy to trade Euro with Britain's pounds sterling when the country was a member of the EU, but cannot guarantee the ease at which the Euro can be traded now that the country has exited the Union. Touching on the effects of what has become known as the "Brexit" on Ghana's currency, Seth Tekper was optimistic the cedi will strengthen because the pounds and Euro will depreciate respectively as a result of the exit. “The pound is one of our trading currencies together with the Euro which is the second one and the dollar. So now the pound is going down against the Euro and the dollar. But the Euro, itself, is going down against the dollar; so the dollar is what is trending now. Now, what that means is in terms of exchange rates; the cedi and these currencies will begin to see shifts. Where one is going down, it means the cedi will strengthen but on average.” he said.

Source: Ameyaw Adu Gyamfi/Peacefmonline.com/Ghana