Cedi can better be strengthened if local production is deepened – Dr. George Domfe
The Development Economist and a Senior Research Fellow at the Centre for Social Policy Studies (CSPS) at the College of Humanities, University of Ghana, said that the country must produce more for export
The Founding President of Africa Policy Lens, Dr. George Domfe, has entreated the Mahama government to focus on boosting local production for export as one of the surest ways to sustain the Cedi’s strength against major international currencies, especially the US Dollar.
“Let us not delude ourselves by thinking that the recent appreciation of the local currency against the US Dollar will last longer. It won’t. It is temporary. The question is, what are some of the measures and policies to roll out to keep the Cedi strong against the American currency in the long run?” he asked.
The Development Economist and a Senior Research Fellow at the Centre for Social Policy Studies (CSPS) at the College of Humanities, University of Ghana, said that the country must produce more for export.
“To keep the Cedi continuously strong, there should be conscious efforts to increase production of goods for export. In so doing, we can bring in more US Dollars to shore up our reserves at the Bank of Ghana” he stated.
“Deepening local production of goods to change the old order of import dependency is very crucial and must be pursued with vigour. We must be intentional about this as a country” he stressed.
“If we don’t produce more for the markets outside our shores, the depreciation of the Cedi would be counter-productive for job creation” Dr. Domfe cautioned.
“In other words, import will take over everything and the local factories will collapse because of stiff competition to push more economically active population out of jobs” he added.
He urged the Mahama government to prioritize policies that seek to encourage Ghanaians to go into production of goods for the export market to help the country generate more revenues in dollars to support the local currency.
Dr Domfe made these remarks while commenting on the appreciation of the Cedi against the US Dollar.
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