international finance

QUESTION THREE Dr. Nii Moi Thompson has questioned Dr. Bawumia's analysis on the depreciation of the cedi. "... He continued to say that in the example cited by Dr. Bawumia, "we seem to have a case of crossed-wire analysis and its associated faulty conclusions. Dr. Bawumia in his analysis said that at the end of December 2013 the cedi was GHC2.2 per US dollar. He added that the Cedi is averaging some GHC 3.8 on the interbank and forex bureau markets and that this represents a depreciation of over 40%." Required: Comment on the magnitude of the depreciation of the cedi in the story above and whether Bawumia's analysis is questionable? 3 MARKS