We Need Cedi Stability Not Appreciation

Over the years, we have tried albeit unsuccessfully to put the local currency side by side its major trading currencies, especially the United States dollar.

We have tried all the solutions in the book, but what we see is the continuous decline of the cedi.

The reasons are not farfetched; the one that readily comes to mind is our dependent on imported product.

When the economic fundamentals as explained by the vice-president, Dr. Mahamudu Bawumia, are weak, the cedi will expose you.

Dr. Bawumia, is now literally in the eye of the storm, as karma has caught up with him. The demand for foreign exchange keeps rising even as the supply side of the hard currency remained static at best.

It is normal for politicians to play politics with everything, including the currency, but if we do not as a people address the problem head on, it does not matter which political party is in power, the cedi, will continue to play second fiddle to the US dollar.

Among the solutions available to us is to go the way of Nigeria by putting some 41 products on import prohibition list.

The policy thrust when introduced by the Central Bank of Nigeria, defined those items like took pick, apple and others in that category which have local substitution as not urgently needed as to receive official foreign exchange allocation.

Another step we can take is to stop deceiving ourselves that the cedi can ever appreciate against the dollar, we should strive to keep it stable for at least six months or one year.

Businesses plan and make projections, if they can be assured that, the currency will remain stable for one year, imagine the impact it will have on them.

In the opinion of this paper, no economic arithmetic, logarithm or lecture by any politician or government can stabilize the forex, except we the people change our taste for foreign goods and concentrate on local production. As long as the people love polish rice against Aveyime rice, as well as frozen poultry, the politician will come up with economic jargons and propound theories to deceive us as Dr. Bawumia did and won power.

We need to restore the value, pride and integrity of the local currency.

 

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