Addressing Ghana’s economic challenges in an era of dollar-cedi petroleum conundrum.

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One of the most talked about issues before the 2016 December polls was how the cedi was fairing against the major trading currency, the dollar in relation to the unstable price of petroleum.

The then opposition New Patriotic Party (NPP) lambasted the governing National Democratic Congress (NDC) for doing little to stabilize the cedi

Today, it seems the cedi has fallen drastically looking at its performance on the exchange rate market.

It is performing so poorly against the major trading currencies such as  the United States dollar, the British pounds sterling, among many others.

Again price of crude oil has shot up on the international market resulting in the use of more cedi in exchange of few dollars in order to purchase crude.

If things remain as it is, there is going to be an increment in most of the major tariffs such as utilities (water and electricity) and transport. This will eventually cause a drastic increment in the prices of goods and services, hence making the standard of living very unbearable for the ordinary Ghanaian.

The question is, what really is the Economic management team being led by the vice president, Dr Mahamudu Bawumia doing about it?

Have they done enough to stabilize the cedi in order to see economic transformation across all sectors of the economy? Your guess is as good as mine.

As it stands now, the cedi is trading at Ghc 5.19 against the dollar, which signifies that you need more cedis in order to go for few dollars which is a detriment to economic and financial development of the nation.

Again, since Ghana import crude oil from  Organization of Petroleum Exporting Countries (OPEC) such as Nigeria , Qatar etc and are being traded in dollars, it eventually  means we need  more dollars in exchange for crude oil which is then refine into petrol, diesel, kerosene, bitumen, as well as other by-product   at the Tema oil refinery (TOR) .

Because businesses would want to maximum profit at any material moment, they are likely to increase the prices of their goods and rendered service due to the increment of petrol . Commercial driverswho covey a chunk of people and goods will obviously increase transport fares due to the same reasons. The same has to do with the petty trade who was also heavily charged when conveying his\her goods.

Why will country endowed with countless natural resources should be crawling when it comes to infrastructure development and economic freedom?A country who discovered and began the extraction of a commodity that determines the fate of its citizen as far back 2007 finds its economy in a shambolic state resulting in the high living standard.

Authorities need to reinvent the wheel to resurrect the country from the crouches of poverty and economic dependency across all sectors of the economy

All hands must be on deck to make the president ambition of Ghana beyond aid a reality.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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