Finance professor at the University of Ghana, Godfred Bokpin, has called on the government to provide regular updates on the state of the economy to the public.
Prof. Bokpin, who is also an economist, believes that such transparency would boost confidence in the economy and mitigate the “wait and see” approach often taken by investors during election years.
He made these remarks in an interview with the Ghana News Agency, addressing concerns from industry and the trading community about the ongoing depreciation of the Cedi against major currencies, especially the Dollar.
“We’re in a crisis; COVID-19 was a pandemic, but we saw a certain level of leadership that recognises that we face some kind of existential threat, therefore, the President mobilised,” he said.
For instance, the Ghana Union of Traders Association (GUTA) has reported that its members have experienced a loss of approximately 20 percent of their capital due to the Cedi’s depreciation against the Dollar since the start of 2024.
At the beginning of the year, the Cedi was trading at about GHS11.98 against the Dollar, but it is now hovering around GHS14.85 in many forex bureaus in Accra.
According to Prof. Bokpin, the government, under President Akufo-Addo’s leadership, may have limited control over the structural challenges facing the economy. However, instilling confidence could play a significant role in stabilizing the depreciating Cedi, which he describes as “the pulse of the economy.”
“If there’s anything that the President can do right now, it is to begin to update regularly Ghanaians. Where we are now requires regular updates from the government, and that update will entail what they are doing on a daily basis and results,” he said.
He explained that such regular updates from the government on the state of the economy and actions being taken to address the challenges could be the starting point of instilling confidence and restoring hope in the economy.
That, Prof Bokpin said, would also be a way of the President telling Ghanaians that though there is limited time left for him to leave office, he is determined to ensure that he would “leave a legacy that we will all be proud of.”
He urged businesses and households to be moderate in their expectations about the fall of the Cedi before the year ends, saying, “There’s no significant inflows or supply of foreign exchange that will help to offer the kind of stability needed.”