Dr. Anthony Akoto Osei, Minority Spokesperson on Finance, has criticized the recovery approach employed by government to shore up confidence in the cedi, arguing that the move is not sustainable.
The government’s injection of some $20 million into the forex market daily as part of an International Monetary Fund’s(IMF) programme, has made the local currency appreciate by some 20 percent against the dollar, the biggest jump in recent times, officials say.
Speaking to Fiifi Banson on Anopa Kasapa on Kasapa 102.3 FM, Dr. Akoto Osei insisted the move is only meaningful for a while but cannot be depended upon to rescue what looks a weakened cedi.
“I foresee the cedi depreciate again, because government doesn’t have the financial muscle to inject more dollars into the system this way; is not sustainable…..and likely by August the confidence built for the cedi will fade because the demand may rise again.
“What government needs to do as a mid-term measure is to strengthen policies that will ensure import substitution and also support build local manufacturing industries.
“But off-course our resolve to improve the economy and the fall of the cedi should first come with government’s discipline on expenditure-government is a big spender and that’s the bane of our predicament.”
By: Kasapafmonline.com/Ghana
