WHAT WE MUST UNDERSTAND .............................................................. As we discuss the depreciation of the Cedi,we must also genuinely consider factors which militate against the stability of the cedi with that,we would in concert arrive on the true reasons for the free fall and find very practical and reasonable solution to it.As a people the sudden change in our attitude to everyday normal life is a contributing factor,we seem to be westernizing everything in our society. We no more want to trade in our currency but in other currency without solid economic base to sustain the effect. People have also forgotten that,with our over dependence on foreign goods and lifestyle,the slightest sneeeze by our international trade partners would impact negatively on our economy. Currently listening to news coming from other countries including the powerful nations,there seem to what economists refer to as currency crisis,there seem to be global economic recession and international economic structural weakness which has come because of the economic battle between the west and China. The interest of China has always been weakening the dollar and doing everything possible to change the international trade convention of doing business in dollar. In our situation we must always use the events of yesterday in fashioning out policies to avert these crisis. Between 2008 -2009 the cedi depreciated by 25% this was because of serious global economic crisis,between 2010-2011,the cedi went down by 18.5% still we were experiencing minor global headaches. As we speak huge part of our cocoa which give us relief,go to china without returning anything dollar all because we have already guranteed Bui project with our cocoa.Today,our internal trade is dominated by foreigners the chinese expecially,the irony is that huge percentage of our internationak trade is linked to china and most of the persona blaming government for the trends are the main players here.We change our monies into dollars to china,whiles the Chinese business persons here also convert their profits here into dollars transferring them into their home country. In the economic terms at times depreciation of a currency may be appropriate considering the import and export dynamics of the country. Depreci ation of the currency can make importation more expensive which could discourage purchase of foreign goods thereby encouraging internal business and protecting local producers.We must consider all these factors in discussing this problem confronting the nation. I honestly think,as a nation,we must begin working on our appetite for foreign goods at the expense of our local producers Raw Passion with Bigg Willy on Radio Gold the instability of the global economy,we cant continue engaging in this economic imbalances,we must accept to institute certain tough but prudent measures to cushion our economic base to save it from any sudden economic shock which may emanate from our international partners. The Finance Ministry policy of rolling in 20million dollars is a laudable one accepted in all economies across the globe,it is one of the immediate a government can implement as remedial measure to combat currency depreciation. CREDIT: OHENENANA OBONTI KROW
Posted on: Mon, 03 Feb 2014 15:01:24 +0000
Trending Topics
Recently Viewed Topics
© 2015