The Director of Strategy and Business Operations at Dalex Finance, Joe Jackson, has charged government to critically analyse factors that have led to the continuous depreciation of the cedi, and propose the appropriate solution to the causes.
According to experts, the cedi is now one of the worst-performing currencies in Africa. According to the Bank of Ghana, the cedi has depreciated by about 14% within the first quarter of this year.
Speaking on the Big Issue on Citi TV, Joe Jackson warned that any attempt to pump dollars into the economy to deal with the cedi depreciation would worsen the situation.
Ghana’s economy is going through turbulent times as it is plagued with a number of challenges, including rising inflation and the rising cost of fuel.
The country’s currency is also suffering depreciation, especially against the US dollar, while the public debt level has attained an unsustainable level.
Various suggestions are being made on how to salvage the situation.
For Joe Jackson, that government must slash its expenditures to bring some stability to the economy.
He said the Free Senior High School policy, for instance, by virtue of its high cost, must be the first to be considered.