Given the rate at which the Ghana Cedi is depreciating, an expert believes it is about time a national emergency is declared for experts to come together and brainstorm on how to save the local currency.
This is the call of the Head of Research at the Institute of Economic Affairs (IEA) and an Economist, Dr. John Kwakye who believes that leaving all matters in the hands of the Bank of Ghana and the government is currently not reasonable.
His call follows the recent significant depreciation of the cedi hitting GH₵ 17.20 to the dollar worsening the plight of individuals and businesses through an increase in the prices of goods and services. Already Ghanaians are feeling the brunt as inflation has been on the increase for the past two months partly driven by imported items which largely suffer the brunt of the cedi depreciation.
The IEA has earlier revealed that the cedi has lost approximately 74% of its value over the past three years. In 2022, the local currency fell by 30%, followed by a 27.8% drop in 2023. In 2024, the cedi has lost nearly 29% of its value.
This rate of depreciation, Dr. John Kwakye describes as very alarming hence requiring unconventional means to address the situation.
He believes a rescue mission is needed where the current government or the next government as a matter of urgency must declare a national emergency on the cedi. This emergency, he proposes must bring together all relevant minds to find a lasting and sustainable solution to the cedi problem.
“The rate of depreciation of the cedi is alarming. We know that cedi significant cedi appreciation is nearly always unlikely. Govt–or the next Gov’t–must declare an immediate national emergency to rescue the cedi, pooling together all minds,” Dr. Kwakye indicated in a post on X.
In 2020, a committee was formed by current government to find lasting solutions to the cedi problem. Named Foreign Exchange Development (FX) Committee, it was a 38-member body charged with the mandate of reviewing the existing forex regime and recommending workable solutions for a stable local currency. But the committee could not achieve the objective for which it was formed.
It is therefore unclear if forming another such committee will solve the perennial depreciation of the cedi.
