Ghana Cannot Outsource Its Stability to Global Luck ~ IERPP Boss to Gov’t
The Ghana Cedi’s strong performance recently against the United States’ Dollar though a welcoming phenomenon, it is not enough to help Ghana’s economic recovery and growth, according to Professor Isaac Boadi.
Contributing to discussions on the gains the Ghanaian Cedi has been making against the US Dollar in particular, the Executive Director of the Institute of Economic Research and Public Policy, Professor Isaac Boadi, stated that a weak dollar is not enough and that more needs to be done.
“The Cedi’s rebound against the US Dollar which is fueled by gold, debt relief and a $490 million lifeline is a welcoming respite, but let’s be clear that a weak dollar is not a good strategy” he stated.
“Emerging markets like Ghana cannot outsource our stability to global luck. We need to go beyond what the global economic crisis gifts to us and solidify our gains with pragmatic policies and programs” he added.
“Without homegrown policies, particularly real structural reforms, curbing reckless spending, boosting local production and slashing import-dependency, this recovery would be a nine-day wonder” Professor Boadi further explained.
He further stressed that though the recovery of the Cedi against the US Dollar is heartwarming and refreshing, government must tread cautiously with its expenditure pattern within the short-term since the gains made so far are artificial, at best.
The Dean of Faculty of Accounting and Finance at the University of Professional Studies, Accra, UPSA, described the celebrations from government’s functionaries as premature and cautioned that if conditions improve on the global market, the US Dollar would bounce back and erode the gains made by the Cedi.
