An economist and a lecturer with the Garden City University College (GCUC), in Kumasi in the Ashanti Region has blamed the continuous decline of the Ghana cedi on incoherence on the part of policy makers of the economy.
Dr Francis Tandoh said the policy incoherence the Bank of Ghana (BoG) and Government are exhibiting has led to loss of trust and confidence in the Ghanaian economy.
Dr Tandoh indicated that, recent measures by the BoG and Government to halt the free fall of the Cedi was not enough and sustainable to stabilize the currency.
The cedi, has continuously depreciated since 2012 against the major world currencies – a situation that affected every sector of Ghana’s economy.
The BoG recently shored up dollars into the economy to help stabilize the cedi – a move that has not yielded any long term outcome.
But Dr Tandoh maintained that Government and the BoG must be blamed for the depreciation of the Cedi due to their incoherence in making policies.
“It is the policy incoherence and then also lack of confidence on the policy makers that is what has actually led to the fall of the Cedi,” Dr Tandoh stressed.
Economic hardship would worsen
The economist however predicts intense economic hardships and increased agitations in the country’s labour front if immediate interventions are not put in place to halt the further decline of the cedi.
He added that the plight of the citizen is set to worsen as the development would have spiral effects on the economy.
He further said the more businesses will shut down as a result.
Dr Tandoh also expressed doubts over the ability of the BoG and Government to stop the cedi decline, adding that the currency is likely to drop further against major world trading currencies.
