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Business News Thu, 11 Aug 2022

Forming new committees won’t bring an end to cedi depreciation, industrialization will – AGI

President of the Association of Ghana Industries (AGI) Dr. Humphrey Ayim-Dake has noted that the formation of new committees is not what is needed to solve the rapid depreciation of the cedi.

This according to him is because the Bank of Ghana has been the trusted body to undertake such interventions hence the formation of a new committee may not be beneficial to the course.

He added that the BoG’s mandate includes finding lasting and practical solutions to the cedi’s depreciation.

“We are of the opinion that the Bank of Ghana that is mandated to engage in the stability of the exchange rate or price stability is an institution which has been tried and tested over the years. It has the capacity to engage in this space. So, it isn’t a matter of putting together another committee to do what the BoG knows how to do best,” he said in a JoyBusiness interview.

“So, our point is that we want practical solutions that will bring about stability in prices since that is the mandate of the BoG. We should urge the BoG to get us remedies; not necessarily forming another bureaucratic organization or committee to explore that opportunity”, he added.

Dr. Ayim-Dake said the AGI, over the years, has prescribed the need for Ghana to invest in industrialization in order to boost the country’s export prospects but adds that government has failed to pay heed to the counsel.

“The remedy that we have stated year-in-year out is to beef up the industrial sector and focus more on the export-oriented production and to avert this cyclical issue that comes year in and year out. Strategic policy interventions that we have advocated many times to address the weakened industrial base have not been taken.”

“That is why I asked a question, what is new? What is new at this time is the extent of stiffness and the extent of the depreciation [of cedi] amidst coming out of the Covid-19 and also the Russian/Ukraine war that has led to a lot of distortion in our supply chain variables”, he mentioned.

Meanwhile, just a few days after Standard & Poor’s downgraded the country’s ratings CCC, rating agency Fitch Ratings revised the country’s credit rating from 'B-' to CCC as well.

This according to policy watchers does not put the country on a good financial pedestal.

SSD/MA
Source: www.ghanaweb.com
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