Dr. Nii Moi Thompson, a former Director General of the National Development Planning Commission (NDPC), believes the government must take concrete steps to address the cedi’s depreciation.
He stated that “flawed and politicized analysis or public lectures” will not suffice to address the situation.
Dr. Thompson stated in an article highlighting the cause of the country’s currency and proposing some solutions that the situation can be significantly addressed if the government reduces its foreign expenditures, including foreign trips.
“It is clear that flawed and politicized analyses, or public lectures full of sound and fury that mean nothing, cannot address the cedi’s woes successfully.” Addressing those problems, on the other hand, will necessitate “serious reflection, a clear vision of the cedi’s and the economy’s future, sound policies, and disciplined action, all of which will undoubtedly transcend governments,” he said.
“In the short term, as the crisis worsens, the government must begin as soon as possible by cutting frivolous spending, particularly spending that is likely to weaken the cedi even further.”
This includes the importation or purchase of luxury vehicles; a reduction in foreign travel by public officials (if they could do it during Covid, they can do it now); an end to the president’s extravagant lifestyle and that of his appointees in general; an end to endless foreign “medical reviews” for public officials, including MPs; and any other spending that puts unnecessary pressure on the cedi,” he added.
Ghana’s economy is in turmoil as a result of a number of challenges, including rising inflation and the rising cost of fuel.
The country’s currency is also falling in value, particularly against the US dollar, and the country’s public debt has reached unsustainable levels.
Various suggestions for salvaging are being made.
Joe Jackson, the Director of Strategy and Business Operations at Dalex Finance, recently warned the government against pumping dollars into the economy to address the depreciation problem.
