Ghana Cedis
Central Bank Takes Steps To Strengthen Local Currency

A former Deputy Governor of Bank of Ghana (BOG) Emmanuel Aseidu ? Mante has criticized government for not curbing the high level of imports. According to the former deputy BOG boss, the only remedy to stop the continuous depreciation of the cedi is to cut down on the high volumes of imports and increase the country?s exports.
The Ghanaian business community has started expressing concerns about how the cedi would perform against the major trading currencies this year following the over 30% depreciation last year.

Ghana Cedi
Ghana Cedi

The demands for more dollars and other major trading currencies by importers have been identified as pressures likely to push the cedi into a depreciating mode again in 2015.

Speaking to Citi Business News the Former Deputy Governor of Bank of Ghana Emmanuel Aseidu ? Mante said it is quite evident that short term monetary policy restructuring is not the best response to the recurring depreciation.

?The Cedi depreciation is due to excessive import because when you are importing too much then it?s at the verge of devaluing your currency. So the things to do are to start looking at how to produce more locally. Our rice import alone is huge, we have become a country of rice eaters, and can?t we produce rice in Ghana? We did it under Acheampong?s era we can do it but it?s a question of leadership and directing people on what to do. If we continue to import hugely into this country then we are going to run into problems with the currency, there will be pressure on the cedi because everybody will want the dollar to be able to import. But is a question of demand and supply.?

The former governor said the country should begin to look at producing to consume within the country first and foremost cutting down on the import and later consider exporting.

?If you are in the habit of importing more than exporting your currency will definitely depreciate and this is not economic but it is common sense.?

Source:
Norvan Acquah – Hayford

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