Cedi will fall soon – Economist

A Chartered Accountant and an Economics Lecturer at the Kumasi Polytechnic, Kusi Boafo, has predicted that the rise of the cedi will not last.

Mr. Kusi Boafo warned, “If the cocoa syndicated loan and the Eurobond money do not come in time, the cedi will go back to where it was a few days ago”.

Sharing his thoughts on the Mid-Year Review Budget presented by the Finance and Economic Planning Minister on Atinka AM Drive, Mr. Boafo said the cedi has been given an artificial strength and “it will affect the economy very soon”. “Very soon, Ghanaians will experience the depreciation of the cedi again, “he added.

He explained that the budget review was an IMF budget requirement adding that many government workers would be laid off by the time the country meets all the IMF conditionalities .

Mr. Kusi Boafo explained that the IMF has forced the government to freeze employment and expenditure in the public sector, and that is why contractors and workers are not being paid.

He said government will get it right in the short term but in the long term, government will suffer because “you must pay the contractor, you must spend and you must pay contractors and workers in the future.”