Devaluation Of The Cedi Is A Weak Economic Policy MP


The Member of Parliament for the Kade constituency in the Eastern Region and a former deputy Eastern Regional minister under the erstwhile Kuffour administration, Hon. Ofosu Asamoah has waded into the ongoing debate of consciously devaluing the cedi as the West African sub region thinks of getting a single currency for the sub region.

Vice President Paa Kwesi Amissah-Arthur believes that the devaluation of currencies used in the sub region will easily pave the way for the establishment of conditions that are crucial for adopting a single currency in ECOWAS zone by 2020.

The vice president when opening the 35th Meeting of the Convergence Council of the West African Monetary Zone in Accra said the vision to establish a single currency in the ECOWAS zone would be a mirage if member countries do not subject themselves to innovations and confront dogmatic thinking.

But the Kade legislator thinks otherwise, he said the Ghana cedi is constantly undergoing natural depreciation which is making living in Ghana difficult, henced the devaluation will worsen the plight of Ghanaian.

“our economy is an import based economy where we import everything and the dollar is the common denominator for trade in the international market, so devaluing the cedi will mean spending more cedis for fewer dollars and that will make cost of living difficult” he said.

“Or will they increase the salaries of workers to meet the cost of living in the country when we devalue the cedi?” he quizzed. “Industries in the country also import everything, so this decision will affect both industry and individual spending.” He added.

When asked if he does not believe that the devaluation will be good for easy sub region trade, the outspoken Member of Parliament said it will be a good policy to help the sub region get the convergence point for a common currency but we can’t think about the region now when our people suffer.

“You look at the interest of the ultimate beneficiaries who are the citizens of Ghana before we go and think about West Africa.” He added.

Hon Ofosu Asamoah was speaking to the press at Kade after he had witnessed the commissioning of a new building for the Kade branch of the Akim Bosome Rural Bank.

The Akim Bosome rural Bank, established in 3rd October, 1983 operates in five districts and Municipal assemblies in the Eastern Region and offer banking services such as savings account, current account, fixed deposit, loans and e-products.

The Board chairman of the bank Mr. George Kumi – Brobbey said, the building which is a spacious one than what they used to have will enhance the activities of the Bank in the Kade township and the Kwaebibirem district.

The debate over the devaluation of the cedi has been met with mixed reaction from economic experts. A Former deputy Governor of the Bank of Ghana, Mr. Emmanuel Asiedu Mante has rejected the call saying majority of companies in import businesses risk collapse if Ghana goes ahead to devalue the cedi.

The Chief Executive Officer of Dalex finance, Ken Thompson on the other hand has backed the vice president’s call saying if companies in the import businesses collapse with the devaluation of the currency, Ghana will benefit in the long term.


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