As at the time of writing this editorial, the indication is that the nation’s currency, the Cedi, exchanges at GH¢ 7.55, to one United States of America dollar.
For most Ghanaians, that is disheartening in the sense that, for a country that is overwhelmingly import dependent, the effect on the economy and the overall wellbeing of the populace could be harrowing indeed. Our worry, however, is that this development is instigated.
Opinion by experts on why the Cedi is lying so prostrate is varied, but one that we can all agree on, even the lay man is the country’s penchant for foreign goods.
It is pertinent to emphasise that a country with a low productive base, a critical economic factor, can only have a currency that flips and flops.
Analysis of trade data for the past 9 years (2011 -2019) reveals that food commodities, vehicles, machinery, electrical appliance, and plastics are among the leading imported products classes in Ghana. Actually, the top 10 imported products (excluding minerals and oil and gas) across the years constitute over 84% of the total imports, valued at an average of GHC 23 billion each year.
Sadly today, the nation imports toothpicks, biscuits, apples and even toilet rolls. Politicians and other high net worth individuals store their wealth in forex without minding the effect on the Cedi or, for that matter, the economy and still wonders why the value of the currency is low.
This newspaper is of the opinion that, in order for the cedi to become competitive against the major currencies, we have to begin to look for home grown solutions to our problems and that must including growing what we eat and eating what we grow.
Goods imported into the country are indexed against the dollar when duties are being calculated and yet we expect that importers will also not priced their goods with the dollar at the back of their minds.
To arrest the fall of the cedi, must be a collective effort, but first those managing the affairs of the country must show leadership, else this cycle will continue no matter who is in office.
