My few solution points for the Ghanaian Economy

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• readi 2 dye 11 years ago

  Currencies are bought n sold 24/7...so how can IMF help stabilize exchange rate. Is it by giving loans, please explain cuz I don't really get it.

  Currencies are bought n sold 24/7...so how can IMF help stabilize exchange rate. Is it by giving loans, please explain cuz I don't really get it.

  reply
• Kofi Ata, Cambridge, UK 11 years ago

  I am surprised the Lieutenant is recommending currency fix rate as a panacea for the current economic mismanagement in Ghana. It appears he lacks understanding of the causes of the economic crisis, which are self-inflicting. ...
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  I am surprised the Lieutenant is recommending currency fix rate as a panacea for the current economic mismanagement in Ghana. It appears he lacks understanding of the causes of the economic crisis, which are self-inflicting. Fixed exchange rate of the cedi against major currencies would not work because the government has no control over the foreign exchange market in Ghana. For fixed currency rate to work, the state must control the currency market at home such as in China. In Ghana, even direct remittances to families in Ghana from the Diaspora is far bigger than what the government gets. Such a policy will result in the cedi being artificially overvalued against major currencies making exports unattractive and imports cheap. That would further worsen the crisis because imports would be cheap and therefore encourage more imports with low exports. That would also worsen the balance of payment for Ghana. Last but not the least, in today's global market, currency controls and fixed exchange rate would simply not work. The only benefit would growth in currency black market. This is the worst solution and lacks any prudent economic (micro or macro) analysis. It should be disregarded.

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• kayayoe 11 years ago

  Its the level of production at home which is killing us. Ghanaians love to consume foreign goods which we cannot produce at home. Fixing the exchange rate will only boost the Black Market. Even porters at the airport don't ...
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  Its the level of production at home which is killing us. Ghanaians love to consume foreign goods which we cannot produce at home. Fixing the exchange rate will only boost the Black Market. Even porters at the airport don't want tips in our own currency. What do you expect? Let us produce enough at home at affordable prices. That may be a step in the right direction.

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• Kpenyigba Kwesi 11 years ago

  It is essential that the government devalues the national currency and encourage export. Surely this can fix the present economy crisis.

  It is essential that the government devalues the national currency and encourage export. Surely this can fix the present economy crisis.

  reply
• Lantei 11 years ago

  Until we revitalise our industries to the point of producing to meet the demands of the market, artificially manipulating the exchange rate will not help.
  
  Once upon a time, military dictators in Ghana thought the way to f ...
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  Until we revitalise our industries to the point of producing to meet the demands of the market, artificially manipulating the exchange rate will not help.
  
  Once upon a time, military dictators in Ghana thought the way to fix the economy was to refuse to pay our international debts, "print more cedis", cause people to lose large denominations of the cedi (only to introduce even larger ones a few years later), and dictate prices for traders. All this only wrecked the economy.
  
  A stronger cedi and a favourable exchange rate can only be sustained by increased levels of production and a strong export sector.

  reply
• Kofi Ata, Cambridge, UK 11 years ago

  I am surprised the Lieutenant is recommending currency fix rate as a panacea for the current economic mismanagement in Ghana. It appears he lacks understanding of the causes of the economic crisis, which are self-inflicting. ...
  read full comment

  I am surprised the Lieutenant is recommending currency fix rate as a panacea for the current economic mismanagement in Ghana. It appears he lacks understanding of the causes of the economic crisis, which are self-inflicting. Fixed exchange rate of the cedi against major currencies would not work because the government has no control over the foreign exchange market in Ghana. For fixed currency rate to work, the state must control the currency market at home such as in China. In Ghana, even direct remittances to families in Ghana from the Diaspora is far bigger than what the government gets. Such a policy will result in the cedi being artificially overvalued against major currencies making exports unattractive and imports cheap. That would further worsen the crisis because imports would be cheap and therefore encourage more imports with low exports. That would also worsen the balance of payment for Ghana. Last but not the least, in today's global market, currency controls and fixed exchange rate would simply not work. The only benefit would growth in currency black market. This is the worst solution and lacks any prudent economic (micro or macro) analysis. It should be disregarded.

  reply
• call me 11 years ago

  LETTER TO DEATH
  
  hi death , i hope u re preparin de admission letter of Castro bt we(ghanaians ) want to make a substitute..pls bring back Castro nd come 4 Mahama plus amissah Arthur..bring one nd get two..
  
  i hope u wi ...
  read full comment

  LETTER TO DEATH
  
  hi death , i hope u re preparin de admission letter of Castro bt we(ghanaians ) want to make a substitute..pls bring back Castro nd come 4 Mahama plus amissah Arthur..bring one nd get two..
  
  i hope u will accept our offer..

  reply