'What did we go to school for?' - Dr. Kwakye challenges economists on solutions to cedi crisis

Director of Research at the Institute of Economic Affairs (IEA), Dr. John Kwakye has urged economists to address the ongoing depreciation of the Ghanaian cedi.

In a series of posts on his handle on X (formerly Twitter), Dr. Kwakye expressed his frustration, questioning why the cedi continues to struggle despite the presence of many economists in the country.

"As economists, we have a duty to rescue the vanishing cedi. I am inviting all economists to offer one solution each. I will then pass them on to our economic managers. If they don’t act on them, at least we would have done our part. So, as economists, we don’t have a solution to the depreciating cedi? What did we go to school for? We must be ashamed of ourselves," he shared.

He further lamented, "How much more cedi depreciation can we tolerate? Why are we all sitting down while our currency is being devalued? The cedi depreciation should be embarrassing to all economists. We seem to have failed Ghanaians. We need a national dialogue to save the cedi. It seems it has been completely abandoned to find its own level."

As economists, we have a duty to rescue the vanishing cedi. I am inviting all economists to offer one solution each. I will then pass them on to our economic managers. If they don't act on them, at least we would have done our part.

— J. K. Kwakye (@JohnKwabenaKwa1) October 23, 2024

So, as economists, we don't have a solution to the extinguishing cedi? What did we go to school for? We must be ashamed of ourselves.

— J. K. Kwakye (@JohnKwabenaKwa1) October 23, 2024

How much more cedi depreciation can we tolerate?Why are we all sitting down while our currency is being extinguished? The cedi depreciation should be embarrassing to all economists. We seem to have failed Ghanaians.

— J. K. Kwakye (@JohnKwabenaKwa1) October 23, 2024

The Cedi’s woes

Currently, the cedi is trading at GH¢16.55 to US$1 at various forex bureaus and the retail market.

The local currency has lost about 26% of its value year-to-date, driven by increased corporate demand and recent Eurobond coupon payments.

Despite a 7-day FX auction by the Central Bank, which accepted all $51.4 million bids, the cedi continued to depreciate, closing the week at a mid-rate of GH¢16.38/$.

The local currency also weakened by 0.24% and 0.70% against the pound and euro, respectively.

ID/MA

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