An economist, Dr John Kwakye has told the government to increase export earnings and also maximize the benefits from natural resources.
This, in his view, will help to shore up the local currency, the Cedi.
Dr Kwakye who is also Director of Research at the Institue of Economic Affairs (IEA) was reacting to a comment by the Director of the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana, Professor Peter Quartey who had expressed optimism that the second tranche of the $600 million International Monetary Fund (IMF) cash will help to strengthen the Cedi.
“For us to get the second tranche [funds], it is dependent on us getting into an agreement with external creditors.
“If that happens, then certainly we are likely to see some stability in the exchange rate market and that drives inflation and a lot of activities on the business front. So, if the exchange rate is relatively stable, we are likely to see some gains,” Prof Quartey was quoted as saying.
Reacting to this on his X platform, Dr Kwakye said “But for how long? We have been here countless times before. Relying on IMF bailout, cocoa syndicated loan, and Eurobonds to back the cedi isn’t sustainable.
“The solution is to increase export earnings and maximise the benefits from natural resources.”