Dr. John Kwakye, the Director of Research at the Institute of Economic Affairs (IEA), has criticized the Akufo-Addo government for its dependence on funds from the International Monetary Fund (IMF), World Bank, and other donor agencies to strengthen the local currency.
He labelled the government’s heavy reliance on foreign aid, including Eurobonds and cocoa syndicated loans, as a “lazy man’s approach.”
During an IEA press briefing on Wednesday, April 3, where he analyzed the recent Monetary Policy Committee meeting of the Bank of Ghana (BoG), Dr. Kwakye stated that over-reliance on foreign aid is unsustainable.
He believes the pressure on the cedi will resurface when the loan repayment is due.
The Governor admitted that the foreign exchange market came under some pressure, both seasonal and non-seasonal February and early March. He reported that in the year to 20th March, 2024, the Ghana cedi recorded a depreciation of 6.8 percent against the US dollar. He, however, stated that the cedi “continues to recover its value.
Dr. Kwakye suggested that increasing forex earnings and reducing import demand are the most effective ways to stabilize the cedi.
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Reacting to this concern, an economist Dr. Patrick Asumin advised the government to complement the monetary effort of the Bank of Ghana to help stabilize the cedi.
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Story by: Osei Akoto(Teacher Kojo) #Ahotoronline.com
