13th June 2024

Dr. Cassiel Ato Forson

In the wake of Ghana’s currency, the cedi, tumbling to unprecedented lows against major global currencies, the Minority in Parliament has intensified pressure on the government for immediate intervention.

The recent nosedive of the cedi, particularly against the US dollar, has sparked concerns over its adverse effects on the cost of living and the pricing of essential commodities.

According to reports from Bloomberg, the cedi has recorded a sharp 14% decline since the beginning of the year, with current exchange rates indicating GH¢14.90 to $1 at reputable forex bureaus nationwide.

Dr. Cassiel Ato Forson, leading the Minority Caucus in Parliament, minced no words in attributing the economic turmoil to what he described as the government’s mismanagement and flawed policies.

During a press briefing on Wednesday, May 15, 2024, Dr. Ato Forson highlighted several key factors contributing to the cedi’s downward spiral, drawing from extensive investigations across commercial banks, forex bureaus, and business sectors.

Among the identified causes were the puzzling shifts in cash reserve policies by the Bank of Ghana, uncontrolled fiscal spending leading to increased demand for foreign exchange, dwindling confidence in the banking sector resulting in currency substitution, and a notable slump in cocoa production, marking the lowest exports in two decades due to sector mismanagement. Additionally, Dr. Forson emphasized the detrimental impact of rampant corruption within the Akufo-Addo/Bawumia government.

In a bid to address the crisis, the Minority has urged President Akufo-Addo’s administration to take swift action, including compelling government appointees to disclose and release any allegedly hoarded foreign exchange reserves. Their urgent directives to the government also include a call for stringent fiscal discipline to curb excessive spending and immediate resolutions to lingering issues within the cocoa sector.

As the economic strain intensifies, the Opposition’s rallying cry for decisive government action underscores the pressing need for measures to stabilize the cedi and alleviate the burden on citizens and businesses nationwide.

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