He has questioned the Bank of Ghana on what exactly is happening and wondered why the central bank compares the performance of the cedi to countries like Argentina, South Africa and Brazil.
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What the hell is going on? - Franklin Cudjoe on cedi depreciation
Franklin Cudjoe, the founder of think-tank, IMANI Ghana has expressed shock at the perennial sharp depreciation of the Ghanaian cedi against major currencies.
President of IMANI Ghana, Franklin Cudjoe
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He said the export credits are largely politicised, humongous tax exemptions are mostly politically arranged jumping by almost 170% in 2018.
Some currency dealers are trading the US dollar for $1 to GH¢5.46.
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In a Facebook post, he wrote: "Today, $1=GHC5.46. Yesterday, it was 5.35 cedis.
"What the hell is going on? The central bank has some interesting advisors. Patrick and myself were reviewing a publication on the bank's website in which the authors create their own fictional models for analysing the cedi's plummeting woes by comparing the cedi's performance with the likes of Argentinean peso, South Africa's rand and Brazil's real and how the dollar and the US federal reserve's minimal interventions via interest rates have impacted the cedi's performance. But truth be told, the US federal reserve's decisions since Trump arrived couldn't all be responsible for the cedi's woes. Argentina, South Africa and Brazil are not good comparators. These two countries have had extremly poor and corrupt leadership leading to economic atrophy until months ago. The authors fail to focus in greater detail on the impact of domestic policy making on the cedi. Just take a look at the various populist interventions at play even with industrialisation- mostly uneconomic. Export credits are largely politicised, humongous tax exemptions are mostly politically arranged jumping by almost 170% in 2018( the President even complained about it in his recent state of the nation address) dubious trade and port facilitation initiatives such as UNIPASS and Cargo Tracking Notes, rudderless luxury taxes and an overall dodgey procurement processes for most of our primed assets and technology services. I could go on..."
Franklin Cudjoe post
Pulse Ghana
Meanwhile, the central bank has started the implementation of some drastic measures to streamline trading of dollars and other major foreign currencies in the country.
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