Prof. Isaac Boadi, IERPP Executive Director
Though the Cedi’s strong performance recently against the United States’ Dollar is a welcoming phenomenon, it is not enough to help Ghana’s economic recovery and growth, Executive Director of the Institute of Economic Research and Public Policy (IERPP), Professor Isaac Boadi, has noted.
In a statement contributing to discussions on the gains the Ghanaian Cedi has been making against the US Dollar, Professor Boadi stated that a weak dollar was not enough, and that more needed to be done.
“The Cedi’s rebound against the US Dollar which is fueled by gold, debt relief and a $490 million lifeline is a welcoming respite, but let’s be clear that a weak dollar is not a good strategy,” he stated.
“Emerging markets like Ghana cannot outsource our stability to global luck. We need to go beyond what the global economic crisis gifts to us and solidify our gains with pragmatic policies and programs,” he added.
Home-grown policies
He further explained: “Without home-grown policies, particularly real structural reforms, curbing reckless spending, boosting local production and slashing import-dependency, this recovery would be a nine-day wonder. ”
He further stressed that though the recovery of the Cedi against the US Dollar was heart-warming and refreshing, government must tread cautiously with its expenditure pattern within the short-term since the gains made so far are artificial, at best.
Prof. Boadi, who is also the Dean of Faculty of Accounting and Finance at the University of Professional Studies, Accra, UPSA, described the celebrations from government’s functionaries as premature.
He cautioned that if conditions improved on the global market, the US Dollar would bounce back, and erode the gains made by the Cedi.
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