The fortunes of the Ghanaian Cedi, has started dwindling again, against its major trading currencies, especially the Dollar, this is despite the 20 million Dollars the Bank of Ghana (BoG), has promised to pump into the economy daily.
Right from the word go, we all knew that all the interventions the BoG has announced since the unfortunate fall in value of the Cedi, was not going to work.
Last year, the BoG, announced some forex measures, when the Cedi begun to decline, the measure went dead on arrival as it only made the situation worse.
A lot of people, especially financial experts, had problems with the forex rules and voiced out their concerns, it was initially rejected, but after the measures failed to stem the decline, the BoG, reversed the decision.
About a month ago, the BoG, once again announced new measures to arrest the decline, after the Cedi was exchanging a little over four Cedis to a Dollar. The measure was to pump in 20 million Dollars daily into the economy.
This was done after a week or two and then, there is no money to continue with the daily injection. It is sad that, we all know what the solution to this cyclical problem is, yet we are all dancing around it.
We need to change the structure of our economy, by this we do not mean, importing less and consuming what we produce, that argument and suggestion has being made over and over again, yet there are countries which are developed and top the chart of nations importing more than 70 per cent of what they consume, one example is Australia.
Government must rewrite and have Parliament legislate most of our investment laws; we should make it mandatory that, any business that makes a certain amount of profit or investments on a certain amount must be made to float shares on the Ghana Stock Exchange (GSE).
How many foreign companies do we have in the country, have we quantified how much they repatriate outside the country every year, because obviously the profit they make are not retained.