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No government has permanent solution to the economic problems in Ghana – Economist

Former Director-General of the National Development Planning Commission (NDPC), Dr. Nii Moi Thompson has said no government can provide permanent solutions to the economic problems in Ghana.

Dr. Nii Moi Thompson

He said the country needs to set aside all political differences and look out for a coalition government that would harness great ideas to fight the economic issue.

He said "By now, it should be clear to any Ghanaian that no single government or president has all the solutions to Ghana’s seemingly intractable economic problems, and that if we can't have coalition governments, the ideal form of governance for a developing country like Ghana that would harness the best ideas from all political parties for the national development. Then, the least we can do in times like this is to set aside that our narrow political differences and rally around common solutions to our common problems."

According to him, with the president [Nana Addo] stating that he is "upset" over the rapidly depreciation of cedi, and the implications for the economy, it's time for him to call a national economic forum to seek ideas on how best to rescue the situation before it gets worse. 

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He stated: "Between the end of December 2018 and the end of February, 2019, the cedi lost a whopping 13.15% of its value against the US dollar, the largest year-to-date depreciation since 2014, when the cedi lost 12.81%. For the same two-month period in 2018, the depreciation was only 0.07%. The year-on-year depreciation (February 2019 vs. February 2018) was 20.38%, the highest rate since 2015, the peak of the economic recession, when it was 27.38%. For the same year-on-year in February 2018, the cedi actually appreciated by 1.36% against the dollar.

"These are gathering clouds of an impending economic crisis and living in denial is no longer an option. We are in this together. We must face it together or sink together."

However, the Bank of Ghana has announced that it will release some $800 million onto the market to curb the cedi's depreciation.

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The Central Bank said it expects the cedi to stabilise against major international currencies especially the dollar.

Market analysts said the cedi has depreciated and is currently trading at around GH¢5.45.

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