Ignore EIU's $1:GHS6 forecast at your own peril – Analyst to govt

Currency Analyst, Sammy Ampah, has urged government to pay critical attention to the latest projections by the Economist Intelligence Unit (EIU) that the Ghana cedi is likely to hit GHC 6 to a dollar by 2022.

According to Mr Ampah, the projection should send a clear signal to the managers of the economy to implement stringent policies that will arrest the local currency from depreciating.

The EIU said their prediction is based on the tighter Monetary Policy in the US from the latter part of this year into next year and the renewal of political uncertainties associated with Ghana’s 2020 elections, as the basis for the prediction.

In an interview with Class Business, Mr Ampah believes government can reverse the trend only if it invests in the real sectors of the economy.

He said such reports are guides for the entities involved to plan well.

“They (government) need to look at being fiscally disciplined that we do not have those budget overruns that we used to have and government should manage the expectations of the people that they do not overspend.

“Government should look at how they can invest in the real sector to grow the economy because it seems all the programmes that they are investing in are more into the social side,” he added.