Chartered banker and financial analyst Prince Obiri Yeboah has recommended that the government initiate an independent investigation into the factors contributing to the Ghanaian cedi’s significant gains against major currencies, particularly the dollar.
He emphasised that the gains should not be politicised, suggesting instead that development economists or a new generation of trained economists be allowed to conduct thorough research into the reasons behind the stability, thereby preventing politicians from exploiting the situation.
Additionally, Prince Obiri highlighted two other key factors contributing to the cedi’s stability: the change in government and the confidence it has instilled in people, as well as the spending of hoarded funds by former appointees of the previous government.
One of the primary factors contributing to the cedi’s strength is the change in government, which has instilled new confidence and a shift in leadership. Historically, the economy has tended to gain strength during the first year of a new government, with the cedi experiencing a corresponding gain in value. A review of past administrations, such as the initial year of Kufuor’s presidency, reveals a similar trend, which was unfortunately interrupted when Ghana was approved a Highly Indebted Poor Country (HIPC).
The same thing happened under the late Prof. Mills. Fast forward to 2017, the cedi regained a lot of confidence, leading to the point where Dr Bawumia told us the cedi had been arrested and locked up and the key handed over to the IGP. ‘That has been the pattern over the years,’ he stated.
He continued, ”Not long ago, we heard that Madam Cecilia Dapaah had kept money in her house. This is just an example. The truth is that we need people to investigate these things and make the findings public. Some government appointees keep money in their homes and don’t spend it due to public perception. They’re careful while in office and release the money after leaving office. When in government, they hoard money as much as possible, and after losing elections, they spend the hoarded money since they may not have a job.
Two, those who operated their private businesses but neglected them while in government will now return to these businesses and likely invest the money they accumulated during their time in office, pumping it back into their businesses or into the system to help them thrive. This is an eight-year cycle that we have witnessed over the years.”
In an interview on Frontline, broadcast on Rainbow Radio 87.5FM, he stated that a change in government also garners support from political entrepreneurs who align themselves with the incumbent administration.
He noted that some of these entrepreneurs initially support opposition parties and subsequently benefit from the ruling government upon assuming power.
By: Rainbowradioonline.com/Ghana
