What is incontrovertible is that in the midst of the hues and cry and the propaganda, the administration of the Cedi under Nana Addo and Dr. Bawumia has been the best for any initially 3 decades of any government inside of their to start with time period given that 1992.
Comply with the facts listed here to appreciate how the Financial institution of Ghana and this government has guarded the regional forex improved. Never drop for the propaganda from all those who have intentionally resolved to attack Dr. Bawumia and governing administration without adducing any info to back their statements. We should as Ghanaians be sensible and expose people who are only just fascinated in attacking other folks even when they are doing much better.
Like him or loathe him, Dr. Bawumia has been one particular of the greatest brains and doers we have experienced at the seat of governing administration because 1992. Human as he is, just like absolutely everyone with constrained performance ranges, he may well not have met all anticipations by Ghanaians, but truly his exploits in federal government inside of the final three several years have just demonstrated a man who is incorruptible, hardworking, focused, intelligent, respectful and committed to his duties. We need to just pray for good well being and very long lifetime for these kinds of personalities in our overall body polity. Ghana can only get better with personalities like him.
The facts exhibits that from 2017 to day (3 several years) the cedi has depreciated by an typical of 8.73%. This compares favourably with:
27.95% for 1993-1996
25.19% for 1997-2000
11.04% for 2001-2004
6.77% for 2005-2008
10.09% for 2009-2013
18.% for 2013-2016
*What does the details convey to you*?
– To start with, in conditions of the three year annual normal depreciations from 1992 to day, both of those the greatest and second finest performances are for NPP governments with the best becoming President Kufuor’s second phrase from 2005-2008 and the second finest with President Akufo-Addo from 2017 to-day.
– But if you search at it from the position of the first term of each federal government also, you will see the first phrase of President Akufo-Addo has witnessed the most effective performance of the cedi relative to the dollar.
– Pretty telling from the info I just shared is that the worst performance of the cedi transpired beneath the NDC.
Our economic historical past, and in point, the background of all economies that follow the floating exchange amount regime such as the United states of america, Good Britain, South Africa, and so on, demonstrate that exchange premiums in just this sort of regimes might either appreciate or depreciate.
For really import dependent and uncooked material dependent economies like Ghana, depreciation appears to be just about a sine qua non, and this has been the circumstance for all the intervals that Ghana has practiced the floating exchange fee routine.
Therefore, just before we are able to have a solid export-led financial state, raise our industrial and creation sectors, deal with the excesses of black market place currency trading trades, have a diversified national financial debt portfolio with a sizable part owned by locals, amongst other folks, the greatest our governments can do is to take care of the forex to decrease the pace and rate of its depreciation. In the mild of this I think this federal government has carried out very well and we must merely acknowledge that even though tapping on their head to do far more.
Interestingly, though the cedi is presently gaining grounds relative to the greenback, those people complaining about the depreciation of the cedi are silent about it. A colleague a short while ago had a dialogue with his close friend from the opposition facet about the the latest gains of the cedi. Whilst his pal from the opposition admitted the cedi was appreciating, he included that “I’m truly not delighted. The price isn’t superior for my transfer”. He was plainly highlighting that, with the appreciation of the cedi, the transfer of dollars he is receiving from abroad isn’t a great deal compared to intervals the cedi was depreciating. His arguments ended up dependent on his partisan politics and egoistic added benefits with no concentrating on the optimistic impact of the cedi appreciation on the welfare of the larger sized populace.
If we all put the political lenses down, we will merely have to enjoy the endeavours designed by this federal government to reduce the rate of depreciation. I will urge them to keep on and remind them also that, like Oliver Twist, we will continually ask for much more but so significantly so excellent. Far more room for advancement.
It is basically far better than ahead of and that is what all voters want. We vote for a change for improvement even if it is not up to our expectation. The truth that there is advancement provides us the hope that with time it will be better. Maintain on President Akufo-Addo, Keep on Dr. Bawumia, Keep on Lender of Ghana and do more for all Ghanaians.
By Dr. Muazu Ibrahim
A previous college student of KNUST (BSc Economics), University of London (MA Progress Economics) and College of Witwatersrand (Ph. D Economical Economics). He teaches economics and Finance at UDS but at this time on a 6-month consulting assignment in Ethiopia for the United Nations Economic Commision for Africa.