The Minority in Parliament has called on the government to stick to fiscal consolidation and rein in excessive spending to curb the depreciation of the cedi.
Speaking to the press in Parliament, Minority Leader Dr. Cassiel Ato Forson accused the government of overspending and awarding contracts in billions of US dollars without proper budgetary and parliamentary approval, contributing to the weakening of the cedi.
“Our cedi is depreciating because the government is on an expenditure spree, spending money as if there is no tomorrow,” he alleged. As we speak, we are aware that they are awarding contracts in billions of US dollars without budgetary and parliamentary approval,” he added.
Dr. Forson, who also represents the National Democratic Congress (NDC) for Ajumako-Enyan-Esiam, outlined several factors contributing to the cedi’s decline, including the Bank of Ghana’s (BoG) policies, such as mixed cash reserve ratios and maintaining segmented foreign exchange markets.
Despite significant foreign exchange inflows from international bodies like the IMF and World Bank, Dr. Forson criticized the government’s management of the cedi, attributing its continued depreciation to poor decision-making.
He highlighted the adverse effects of the cedi’s depreciation on the prices of goods and services, leading to increased costs for consumers and worsening economic conditions for Ghanaians, especially importers facing higher expenses for the same quantity of goods.