Professor of Finance & Economist at the University of Ghana, Professor Godfred Bokpin, has expressed concerns about the depreciation of the country’s currency.
According to Professor Bokpin, the over-dependence on imports and the lack of local content in the economy have significant repercussions for the exchange rate, impacting both consumers and businesses.
He highlighted that there are currently no sufficient measures in place to address these issues. Prof Bokpin stressed the importance of tackling these challenges to strengthen the economy and shield citizens from their adverse effects.
“In this country, we are okay to do everything wrong and expect the cedi alone to do the right,” he said.
He attributed part of the cedi’s depreciation to the International Monetary Fund’s (IMF) programme with Ghana.
He said that under the IMF programme, the Central Bank was barred from intervening in the currency exchange market when the Cedi fell against major trading currencies.
That situation prevented the Bank of Ghana (BoG) from entering the foreign currency market to stabilise the Cedi.
“If it were not for the IMF, the Central Bank would not sit unconcerned in an election year. The Central Bank would want to fight it off and burn it through the reserves. But we have a mandate in the IMF programme to build our reserves,” he said.