If The Fundamentals Are Weak, Exchange Rate Will Expose You ..."100% Correct; I Still Stand By It" - VEEP

Vice President of Ghana and the head of the Economic Management Team, Dr Mahamudu Bawumia, has jabbed the opposition National Democratic Congress (NDC) for attempting to use a very popular phrase he coined years back against him.

The NDC had teased Dr Bawumia for failing to live up to expectation when it comes to managing the economy.

The criticisms got worst when the cedi started depreciating.

The NDC claimed the exchange rate had started exposing Dr Bawumia. "If the fundamentals are weak, the exchange rate will expose you", throwing back the Veep's words at him; a statement he made when the NPP was in opposition.

Responding to the critics during the maiden Town Hall Meeting on the theme, ‘Our Progress, Our Status, Our Future,' Dr Bawumia said he still stands by his words and the fact that the cedi is depreciating, does not mean the fundamentals are weak.

"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 it is true now. It is 100% correct. So if the fundamentals are weak the exchange rate will expose. But is warped logic to jump from that to a conclusion that if there is depreciation in your currency then the fundamentals must be weak. It is a very warped logic. If the fundamentals are weak, the exchange rate will expose you but if the exchange rate moves, you cannot jump to that conclusion that the fundamentals are weak. That defies logic. There could be other external factors causing the exchange rate depreciation.”

“For example, if I tell you that if your leg is broken, you are going to be unable to walk then I’m somewhere and somebody comes to tell me that this person is unable to walk. Can I conclude that the person’s leg must be broken? There can be other reasons why you cannot be able to walk. But the NDC logic will insist in the face of contrary evidence that since you cannot walk then it means your leg must be broken,” he insisted," the Vice President stated.