Cedi autumn: expand the export base – from Terkper to the government

Company News of Wednesday, March 20, 2019

Source: starrfm.com.gh

2019-03-20

The former finance minister, Seth Terkper, said the most effective way to prevent the Cedi's fall relative to international trade currencies was to expand the country's export base. country.

It is after that Mr. Terkper rejected the import ban suggestions, which would be the main cause of the poor performance of the Cedi.

According to him, totally banning the import would be perhaps the best solution to deal with the steady fall of the local currency, but Mr Terkper was quick to add that such a measure would have disastrous consequences, particularly particularly adverse reactions of the blocks. not advisable.

The suggestion comes as the Cedi begins to see gains after a dramatic fall against the dollar from February.

Some Ghanaians attributed this fall to weak economic fundamentals, despite badurances from the government.

Addressing Francis Abban on Wednesday morning, Terkper urged economic managers to be cautious about gains from the currency, which could be a "temporary relief."

"The most difficult decision is to ban the import of products you produce locally, but we are members of international trade badociations and you can not do it properly," he said.

Regarding the oversubscription of the last bond issued by the government, Mr. Terkper said that the managers of the economy deserved to be commended for this feat.

"Some debt management policies are maintained and I think that's fine. Income streams do not come in as much. Forex supply has become secondary and necessary. If we had a constant influx of foreign currency during the dry season, things would have been much better and we would have had some relief in the short term. "

He also warned against the government's latest decision to defer interest payments on the loans due.

"We are starting to postpone even interest payments on some of the loans and bonds we are entering into and this is not the best. If we continue in this way, we will experience reversal risks that are dangerous.