Freeze Public Sector Recruitment to Stop Cedi – Nii Me Thompson in Government

Company News on Tuesday March 19, 2019

Source: citinewsroom.com

2019-03-19

According to economist Nii Moi Thompson, the government should end recruitment in the public sector in order to put an end to the rapid depreciation of the cedi.

In Citi TV's view, the government must focus on cutting spending to save the currency that has depreciated against the dollar and other major currencies.

"If the government wants to limit this galloping depreciation problem, the first line of action will be to reduce government spending. Freeze hiring in all areas.

Taking the example of the United States of America, Dr. Thompson said, "This is what is being done elsewhere in the world. During the last financial crisis, some American cities sold their town halls to private companies because they could no longer afford to do so and rented them out. "

"Every time you have a crisis, you are supposed to redefine the priorities of your spending, but here we spend as if we had a bottomless financial pit," he added.

He complained that the state "put so many people on the payroll of the government who should not be here".

Citing contemporary examples, he described the creation of 44 new districts and six new regions as "unproductive expeditions".

"The role of government spending; Excessive and reckless government spending may be one of the most important factors. [affecting the cedi]. "

The cedi has depreciated against the dollar from 4.9 to 4.5 GHC since the beginning of the year, raising concerns among the business community, among others.

In 2018, the cedi is depreciated by 8.4% against the dollar.

In 2015, the three-year loan agreement between the government and the International Monetary Fund (IMF) provided for the freeze of jobs in government departments, with the exception of those falling under the authority of the government. education and health.

The agreement also stipulated that the government limit the nominal increase of the wage bill to a maximum of 10%.

Amortization in Cedi: "We should get by" – Ofori Atta

Finance Minister Ken Ofori-Atta said last week that the free fall of the cedi against major foreign currencies, especially the dollar, would be reduced in the coming weeks.

He added that the government is expecting a new capital injection, such as the $ 750 million Standard Bank bridge loan, to face the challenges the Cedi is currently facing.