Editor-in-Chief of the New Crusading Guide newspaper, Abdul Malik Kweku Baako Jnr., says unless politics is taken out of the equation on the matter of the depreciation rate of the cedi, it will be difficult to find a lasting solution to it.
The cedi has depreciated by 8.5 percent since January 2019.
Currency analysts are saying investors are withdrawing their money from the country, which was a cause for a slump in the value of the currency.
Over the years the two major political parties: the ruling New Patriotic Party (NPP) and the opposition National Democratic Congress (NDC) have been engaging in 'cedi politics'; playing politics with the fall of the cedi.
The NDC are currently on the neck of the NPP especially Vice President Dr. Mahamudu Bawumia to stabilize the cedi which is now trailing behind the dollar at GHC5.62.
The Minister of Finance, Mr. Ken Ofori-Atta, has assured that the cedi will begin to appreciate against the major currencies within two weeks.
He said government is expecting large inflows of foreign exchange in the country soon to help turn around the value of the cedi.
“We have about $300 million coming in from COCOBOD and another $600 million also from COCOBOD in about a month or so. We have officially launched our Eurobond which will be $3 billion and that should close within the next couple of weeks. With the kind of fundraising that I have talked about; I think that all things will come to an end and we will realise that this is just a blip...and all of this should happen the next two or so weeks,” he indicated.
But Kweku Baako speaking to this in a discussion on Joy FM's Newsfile programme says 'the earlier we cut out the politicization, the better'.
Speaking on the Finance Minister's assurance, Kweku Baako says "I want to believe what he is saying but I am wondering if history really supports what he is saying; we’ve seen this prescription before….it’s recycling of the same old story; injecting more foreign exchange into the economy…I know in the short term; in the medium term perhaps these are prescriptions that you can operationalize and put out there but it must come with other factors; some other factors must come to bear to at least bring a certain relief...unfortunately we have a history of politicization of this particular issue of cedi depreciation...
He further warned that until "we cease" playing politics with this, "the same situation will pop up even if NDC comes to power"
"There is no quick fix to this challenge…" he added.
Source: Rebecca Addo Tetteh/Peacefmonline.com/[email protected]
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YEAH MR. IT IS SURPRISING HOW FAST PEOPLE ARE NOW GETTING UNDERSTANDING. GLORY TO GOD
When Bawumia was all over the place making jokes about the cedi and the sitting President, you guys sat back and laughing because you know you'll be the ultimate beneficiaries. See where we have now gotten to. Who shouldn't politicize what? You can't stop the opposition. They will a real meat out of it. By the way, did we over-hype Bawumia? Eno dey see top!
Its funny when people like you make suggestions on issues such as the cedis and try to play the equalisation game. If NDC mismanaged the economy as you claim,is the NPP rightly managing it now? Borrowing and floating bonds is the lazy man's approach to finding lasting solutions to the cedis free fall against the dollar and other currencies around the world. The fact is that NPP don't know how to manage the economy of the nation. If they knew they wouldn't sell Ghana Telecom at the advice of Dr. Bawomia as the economic adviser to Ghana Telecom Board as at that time. Go check Zimbabwe what Dr. Bawomia has done to their currency after handling their economy for a while. When the fundamentals is weak the exchange rate will expose you and you can't run an economy of a country on lies because a lie is like pregnancy,the longer it stays the more exposed it becomes.
When they get up all they trumpet out is the slogan foreign direct investment ,but they don't get it that the profit will be sent back in dollars . I don't get it how long our leaders will think sensibly . The solution is to help Ghanaians to build and own industries and manufacturing hub ,the profit they make will stay in Ghana . Give them tax holidays ,tax breaks etc and also our business men and leaders should reduce their taste for too many foreign Goods from cars to watches ,dresses, bags , jewelry . Let support our own ,the government should through education conscientize the young pupil to believe in Ghana ,eat ,wear ,drink ,drive and do everything Ghana.
GOLD(winneba) AT HOME* Double Track At The Tertiary Level. Banking and Financial sector suffering(deliberate collapsing of Ghanaian owned banks whose owners do not belong to Npp Collapsed Memz Gold Ceding suffering, Petrol prices suffering Ghana is working again
Ghana doesn't need to industrialize to strengthen it's currency. Bauxite alone if we use it wisely can bring in more than $10 billion dollars a year. Go and tell the oil rich Arabs to industrialize!
CEASE FIRE CEASE FIRE! Enough of the politics by the unpatriotic and doom sayers! The facts are clear, until we industrialize our economy, the cedi will continue to be weak. IS FACT NPP OVER EXAGGERATED DURING NDC GOVERNMENT simple because NDC incompetently mismanaged the economy. THATS THE FACT
HAHAHAHAH, KWEKU HAVE YOU FORGOTTEN BAWULIAR WON THE ELECTION FOR THE NPP ON CEDI POLITICS?
STOMACH JOURNALIST
Its foreigners who will buy the bonds but have we considered the insecurity of the state. Some investors are relocating their investment do you new ones will be encouraged to come? At least Ghana has $900m for a month probably.