Gov’t blamed for cedi depreciation

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• Kwame Bediako 11 years ago

  Where was this man all these years.The Mahama Government,Atta Mills Government,Kuffuor Government and Rawlings Government have all engaged in gross mismanagement and reckless dissipation of public funds for many years.Why is ...
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  Where was this man all these years.The Mahama Government,Atta Mills Government,Kuffuor Government and Rawlings Government have all engaged in gross mismanagement and reckless dissipation of public funds for many years.Why is this professor coming out to speak at this time when things are already out of control?

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• I say 11 years ago

  So true. the man is so very late on the scene. Am amazed that a man with that title has not even gone out more to throw lots of information out to the public for general consumption.

  So true. the man is so very late on the scene. Am amazed that a man with that title has not even gone out more to throw lots of information out to the public for general consumption.

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• Lord Tennison 11 years ago

  Dr. Wampah doesn't understand how the Forex market works,hence all his confused guidelines.
  The greatest demand pressure on the GHC is from importers who have GHC but need USD to pay for their imports.
  So the demand pressu ...
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  Dr. Wampah doesn't understand how the Forex market works,hence all his confused guidelines.
  The greatest demand pressure on the GHC is from importers who have GHC but need USD to pay for their imports.
  So the demand pressure can be reduced
  by curtailing some imports and imposing excise duties on others to reduce the quantities(John Mahama's function).
  Another source is debt servicing of our foreign debts(principal and interest disbursements).
  This can be managed through debt restructuring and by earning more USD.
  
  An export drive to bring in more USD will not have any significant impact if the exporters are allowed to retain all the USD in their accounts(either in Ghana or in Utopia).
  Why is the Bank of Ghana allowing the exporters to keep 60% of the export proceeds in USD?How will the bank get the needed USD to finance its open market operations on the Forex market to stabilize the Cedi?
  I was expecting the bank to retain a CHUNK of the export proceeds and give the exporters the GHC equivalent so our foreign exchange reserves will build up.
  And why will Dr. Wampah allow the exporters to keep 60% of their export earnings in USD in the commercial banks and not allow the banks to lend the deposits to anybody who needs USD?
  I would have allowed the commercial banks to pay interest to attract the USD deposits and lend the money to those who need the USD.To promote the commercial banks financial intermediary role.
  A major problem is incompetence.The Bank of Ghana needs a governor who understands what needs to be done.It is very troubling that Ghana,a country which should not be poor,is still struggling.
  As i have said before in many of my comments,all those restrictions are irrelevant.Markets do not thrive when there are so many stumbling blocks.You create monopolists in such situations.
  The 'dollarization',the USD loans,USD cheques,forex bureaux,the Stock Exchange are all signs that our financial market is coming of age.
  As somebody who has studied and passed Finance of International Trade and Payments,and traded briefly on the Forex market,all those directives by Dr.Wampah are unsound.
  These are my recommendations to ensure the health of the GHC:
  (1)Export drive for more USD. The export proceeds MUST be wired to the Bank of Ghana. There should be monetary sanctions for failure to repatriate earnings.
  N/B
  The Bank of Ghana MUST keep MUCH of the USD and give the exporters the GHC equivalent.
  (2)The Bank of Ghana must be vigilant about the USA economy since the GHC is pegged to the USA so it can take the appropriate and SPEEDY measures to stabilize the GHC(no Sluggishness).Note should be taken of the fact that the currency pairs move in different directions.As the base currency(USD) strengthens,the secondary currency(GHC) weakens.Meaning more GHC will be needed to buy a unit of the base currency.The strength of a currency also has a bearing on the strength of one's economy,among other factors.It is the reason the growth of the US economy will weaken/depreciate the GHC.This is an external and uncontrollable occurrence.The Bank of Ghana can only react through its open market operation.
  (3)The Bank must ensure the liquidity of the Forex market.There should be adequate USD always.
  (4)Impose few restrictions and allow more players to enhance competition, with strict supervision.Bearing in mind that over burdening the market with restrictive rules will nurture the black market in foreign exchange,lead to lost revenues and compel Ghanaians to open accounts in neigbouring countries where there are no such restrictions.
  Our Achilles' Hill is inadequate foreign currencies.So the ultimate goal of the Bank is to encourage inflow of foreign exchange to boost the supply.
  (5)The Bank should complement its efforts to stabilize the Cedi with those of John Mahama.The fiscal and monetary policies should come at the same time in order to be effective.

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• LINUS 11 years ago

  KWAME BEDIAKO OR WHATEVER U CALL YOURSELF,THE GOVERNMENT SHOULD BE BLAMED FOR ITS INDECISIVENESS AND INNABILITY TO SOLVE BASIC PROBLEMS SINCE THEY ALL LACK THE BRAINS......TWEAAAAAAA THE WORST GOVERNMENT THAT EVER HAPPENED IS ...
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  KWAME BEDIAKO OR WHATEVER U CALL YOURSELF,THE GOVERNMENT SHOULD BE BLAMED FOR ITS INDECISIVENESS AND INNABILITY TO SOLVE BASIC PROBLEMS SINCE THEY ALL LACK THE BRAINS......TWEAAAAAAA THE WORST GOVERNMENT THAT EVER HAPPENED IS THIS CURRENT ONE UNDER JOHN MAHAMA
  APUUUU LET US THINK WAI MMMTTTTCCCHEEEEEOOOOOW

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• The Mask 11 years ago

  Some people have trouble tracking many accounts in multiple currencies.
  
  Boachsoft Finance 2012 software, developed in East Akyem Municipality (Akyem-Maase and Bunso) in the Eastern Region of Ghana and in Accra/Tema, is hel ...
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  Some people have trouble tracking many accounts in multiple currencies.
  
  Boachsoft Finance 2012 software, developed in East Akyem Municipality (Akyem-Maase and Bunso) in the Eastern Region of Ghana and in Accra/Tema, is helping many families across the globe to balance the family budget, amortize loans and save for the future.
  
  The next version is set to be released in December 2015. Use only the 2012 version.
  
  For more information on managing family finances read the following article:
  
  blog(dot)boachsoft(dot)com

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• Whatever 11 years ago

  If it was spending that causes depreciation then the American and Chinese economies would have collapsed by now.

  If it was spending that causes depreciation then the American and Chinese economies would have collapsed by now.

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• Kwame(USA) 11 years ago

  So it is not dollarization as the chairman of the BoG proclaims

  So it is not dollarization as the chairman of the BoG proclaims

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