The Chief Executive Officer of Dalex Finance, Ken Thompson, has little hope in the $2.25 billion bond sparking any substantial or long-term economic turnaround.
Indications are that the Cedi may be set for a period of relative stability after significant depreciation on the interbank foreign exchange market and across forex bureaus in the country in 2017.
But Mr. Thompson said he expected “a huge dip” when the $2.25 billion bond run out.
Furthermore, he said basing the strength of the economy on the the strength of the cedi would be misplaced.
“The cedi does not reflect the true state of the Ghanaian economy and every time the cedi depreciates, we take our savings to prop it up. But how long can we continue to do that? The cedi must be allowed to reflect the true state of the economy.”
Government has indicated its resolve to ride on the back of its ‘Planting for Food and Jobs’ programme make Ghana more self-sufficient.
Mr. Thompson was speaking on Eyewitness News, after the President had launched the ‘Planting for Food and Jobs’ programme, where he stressed that, efforts must be directed at Agriculture if Ghana was to see any meaningful progress.
But the standing of the cedi means local consumers are likely to neglect local farmers and their produce, Mr. Thompson argued.He explained that “the cedi at the rate at which it is, means our products produced [locally] are not competitive so people will still continue to consume imports and our farmers will suffer. You go to the north and we have farmers whose rice they can’t sell because it is cheaper to import from Thailand.”
Thus, Mr. Thompson opined that, “for us to get where we want to be, the industries based on imports would have to collapse and new ones based on exports will rise. It’s basic, but we keep putting our head in the sand.”
By: Delali Adogla-Bessa/citifmonline.com/Ghana