Dean of the School of Business at the University of Cape Coast, Prof. John Gartchie Gatsi says pumping $2bn into the economy as is being proposed by the government is not enough to curb the depreciation of the cedi.
Prof. Gatsi believes the pumping of the $2bn is only meant to cure the challenge of the cedi within a short term.
“If the money is injected into the economy, it will be for a short-term stability for the country…that is not the solution to what we know to be the problem regarding the currency,” he stated.
According to him, in order to halt the depreciation of the cedi, there is the need to target the demand and supply factors.
He asked, “what do we do in other to increase the generation of foreign currency, what do we do to get a robust reserve; these are the policy measures that should come very clear…we have not been able to deal with the demand factors, what are the factors causing the pressure… what do we do with the demand for foreign currency to import agricultural products that we are able to produce…”
Prof. Gartchie Gatsi’s comment on ATL FM’s ATLANTIC WAVE is in reaction to the president’s approval of measures to mitigate hardships in the Ghanaian economy.
Jubilee House Post
The Jubilee House in a Facebook post on Wednesday, March 23, 2022, displayed measures President Akufo-Addo has approved to mitigate hardships in the Ghanaian economy.
In addition to the pumping of $2bn, the post indicated that “Cabinet agrees border reopening within 2 weeks, government cuts salaries of appointees by up to 30%, and Policy rate increased substantially to 17%; cost of loans to go up.”
Also, due to the country’s economic challenges, members of the Council of State have decided to reduce their monthly allowances by 20% until the end of the year.
Salary pay cut
On the Salary pay cut, Prof Gatsi said it is important the government looks at how to moderate the borrowing this year, rationalize the borrowing plan to meet the priority things needed to be done, rationalize contracts that should be executed for the year, combine ministries, among others.
“I believe those are the high secret expenditure areas; if we are done with that and we do not feel comfortable that we have done enough, then we can go to the next level of trying to cut down salaries…and I think it should come through some negotiations because if you are able to do it to parliamentarians then it means that we should all expect that if you are not satisfied, you will cut our salaries,” he said.
Read also: UCC Pro VC pays working visit to sections of the University
Source: Aba Aikins Appah/ATLFMNEWS
