Dr. Samson Anomah, a Ghanaian economist, has recommended Ghanaians to minimise their dependency on imports and purchase domestically manufactured goods if they want the cedi to appreciate against the dollar and other international currencies.
He claimed that one of the primary reasons why our local currency is currently depreciating against the dollar and other currencies is that the majority of our goods are imported.
He said the cedi depreciation is caused by our over-reliance on imported goods, whose prices were directly affected by the exchange rate of the cedi in terms of the major international currencies, particularly the dollar.
The economist stated this in an interview on Nyankonton Mu Nsem on Rainbow Radio 86.5 FM.
He stressed that we must make a conscious effort to minimise our preference for foreign products.
“The cedi depreciation is a major challenge, but we have to blame ourselves. The huge importation and reliance on foreign goods is one of the major reasons affecting our economy. Business owners keep importing because Ghanaians prefer them, and they need foreign currencies for their imports because we don’t use the Ghana cedi for these goods.
This is the main reason why our currency keeps depreciating against foreign currencies, particularly the dollar. When these foreign currencies become scarce, they become expensive,” he explained.
He also noted that some people have purposefully held the dollar in the hopes of cashing out when demand is higher.
He said we cannot blame the government for these challenges because our own demand for the dollar and its shortage in supply in recent times have also escalated the exchange rates.
He emphasised the importance of adopting a solution that will stabilise our currency, and that in order to handle the situation, we must limit our desire for the dollar, particularly when we have no use for it.
“Some business owners have kept the dollar at home and have no need for it. Their major goal is to make money when there is a scarcity and high demand. This is escalating our troubles. This circumstance will exacerbate the poor’s condition, depreciate the cedi, raise exchange rates, increase inflation, and raise commodity prices.”
By: Rainbowradioonline.com/Ghana
