Cedi from Ghana must be allowed to fall – Ken Thompson | Economy

In the aftermath of the debate over the depreciation of the local currency against major foreign exchange currencies, particularly the US dollar, Dalex Finance President and CEO Ken Thompson urged the cedi government to fall to reflect its true value.

"Supporting the cedi prevents making the right investment decisions and also prevents us from changing our consumption habits and compromising our food security by reducing the price of imported food and making our local food production expensive and uncompetitive" said Mr. Thompson. in a statement issued on April 2 in Accra.

This, he said, has damaged our agricultural sector and endangered the country's food security.

"Let the cedi reflect its real value to help promote crops and exports of local food crops.

"Unemployment and poverty will continue to increase if we do not start reducing the level of food imports and increase local food production. If we continue to import food, we will one day lose our ability to produce food and if our trading partners get angry with us, we will starve.

"We import everything and produce practically nothing. It's the same country that has developed cocoa, which is not indigenous to Ghana, and has become the world's largest exporter, so do not tell me that Ghanaians do not respond to economic incentives, " did he declare. .

Impact on agriculture

According to him, agriculture was the miracle solution and make agriculture attractive by providing rural areas with roads, health facilities, drinking water, good schools and extension services was necessary to develop the sector.

He also stressed the need for tax and other incentives for exporters.

"Let the market development, capacity building and access to financing for exporters. Simply replacing the food and livestock we import, such as rice and chicken, will have a significant impact on Ghana's foreign exchange reserves and food security, "he said.

He took advantage of the opportunity to erase the myth that blamed the fall of the cedi to Forex Bureau operators. He said: "These operators do not have the resources to undertake the kind of speculation we mistakenly attribute to them."

He said the operators should rather be appreciated to further reduce the value of the cedi.

The CEO noted that the Cedi's misfortune was a purely structural problem requiring long-term efforts and a painful process.

"To institute decisive measures to stop the downward slide of the currency will fail. How can we hope to correct a structural problem without pain? He asked.

According to him, the country exported Ghana's wealth and jobs abroad by continuing to support imports of goods and services.