Injecting dollars to stabilise cedi "most useless, disgraceful" use of our hard-earned forex – Pianim

The recent injection of close to a billion dollars into the economy by the central bank to stabilise the failing Ghana cedi is the “most useless” and “disgraceful” use of Ghana’s hard-earned foreign exchange, economist Kwame Pianim has said...


The recent injection of close to a billion dollars into the economy by the central bank to stabilise the failing Ghana cedi is the “most useless” and “disgraceful” use of Ghana’s hard-earned foreign exchange, economist Kwame Pianim has said.

At an economic forum held in Accra on the theme: ‘The Ghana cedi, breaking the cycle of depreciation’, Mr Pianim said such use of Ghana’s forex was pointless.

The central bank recently pumped some$800 million into the system after the cedi fell close to the $1: GHS6 rate.

Coupled with the recent issuance of a $3 billion Eurobond which was oversubscribed by six times, the cedi regained some value and traded at $1: GHS5.16 but recently fell to $1: GHS5.41.

In Mr Pianim’s view, “In 1988, we brought the two – the black market rate and the official rate together – that’s when we set up the forex bureaus to try to mobilise the dollars in the private sector and put it in the main sector.

“Now, we have a market-determined one, and the central bank sometimes has moved in with $700 million to stabilise the cedi. It is the most useless and disgraceful use of our hard-earned foreign exchange that should be used for transforming the economy.

“Instead of using that [for that purpose], you can use it for processing tomatoes so that we don’t import, for rice so that we don’t import”, he said, adding: “For a steady long-term approach, as I’ve said, we need to move to restructure the economy”.

He also said Ghanaians should learn to blame the independent Bank of Ghana for the weakness of the cedi rather than the government. “We should not blame the government for the cedi depreciation,” he said, adding: “We should blame the Governor of the Bank of Ghana because that is their job.”


Source: Ghana/ClassFMonline.com/91.3FM



Related Posts

Man gets tens of thousands of birthday calls after sons post his phone number on billboards

Ghana may auction Eurobonds with or without final IMF review

Judge questions 1-yr delay in prosecuting man who set 11-yr-old boy ablaze

Muntari joins Spanish side Albacete on one-year deal

Woman lives with plastic pill packaging lodged in her throat for 17 days

Ramaphosa condemns xenophobic attacks

WB to support Ghana in 4 thematic areas

These are the signs you’re ready to define your relationship

Leave a reply
your email address will not be published

Featured Posts

Liverpool regain top spot with late Alderwiereld own goal


WB to support Ghana in 4 thematic areas


2020: Reject Mahama, he failed northerners – Bugri Naabu


Rapper Nipsey Hussle shot dead in LA


Tinder says it's introducing height verification. If only.


Archbishop Porter: 60 food-poisoned students discharged


WB to support Ghana in 4 thematic areas


WB to support Ghana in 4 thematic areas


Rapper Nipsey Hussle shot dead in LA


Tinder says it's introducing height verification. If only.


WB to support Ghana in 4 thematic areas


Tinder says it's introducing height verification. If only.


Archbishop Porter: 60 food-poisoned students discharged


Archbishop Porter: 60 food-poisoned students discharged