AFAG Channels Out 8 Resolutions To Revamp Ghana’s Dying Economy

The Alliance for Accountable Governance (AFAG), a public interest advocacy group that shares a lot of centre-right position of ideological philosophy with the ruling New Patriotic Party (NPP), has for the first time laid bare the dire economic situation before the government, advocating some dogmas to help save the country’s economic situation.

They claim that even though the current rate of cedi depreciation is entirely artificial and the result of speculators’ mischief. There is some panic purchasing, a lack of confidence, and a high level of uncertainty in the financial market, despite the fact that it partially reflects issues with the balance of payment brought on by the post-Covid and Russia-Ukraine Wars.

They are also drawing the president’s attention to the ineptitude of the Central Bank. Asserting those high-placed persons in the central and commercial banks with profit motives auction dollars at an interbank rate which is cheaper to the black markets, who then sell it on the market at very high rates.

Also, businessmen in the subregion contribute to the volatile situation by coming to Ghana to sell their currency and buy dollars at a cheap price, then send it to their countries where dollars are quite expensive.

AFAG also pointed out the lack of confidence in the finance minister, Ken Ofori Atta, by the masses for not doing much to save the economy.

The group, therefore, proposed eight resolutions which they believe should the government act on them, can save the country’s economic surge from further deterioration.

Below are the resolutions outlined;
● The minister of finance must be reassigned.

● Some forex restrictions targeted at persons undermining the system from the central bank through the commercial banks to the unlicensed forex operators.

● Investigate the banks and prosecute officials engaged in forex trading.

● Impose import restrictions on selected items.

● Engaging multinational companies, and business ventures contributing to the capital flight.

● Restricting export of forex to a certain level at least in the next 6 months.

● Ensuring that traders who export US dollars from Ghana in the year have imported about an equal amount to the country.

● Encourage Ghanaians to understand why the current rates are artificial and how they will trade at a loss when the market settles and the cedi benchmarks to the US Dollar at its real value.

Read The Full Statement

The Alliance for Accountable Governance (AFAG) a public interest advocacy group but shares a lot of center right position on issues which often than not are in sync with the ideological philosophy of the New Patriotic Party (NPP), over the years have been quiet out of good will to Government. However, in view of recent developments we are forced to depart from our current position on nation development. Mr President, it is our considered opinion that the current speed of the cedi depreciation is borne out of mischief of speculators, and purely artificial. Although it will reflect to an extent challenges with balance of payment as a result of post covid and Ukraine, there is some panic buying, lack of confidence and a high degree of uncertainty on the financial market.

Mr. President there is a certain conspiracy theory that points to the central bank supervision on the forex market been weak, it is the belief that high placed persons in the central and commercial banks with profit motives auction dollars at interbank rate which is obviously cheaper to the black markets who then sell it on the market at very high rates. It is also the belief that businessmen in subregion are contributing to the volatile situation by coming into Ghana to sell their currency and buy dollars for cheap in Ghana thereafter, sending it to their countries (where dollars are quite expensive). Mr. President this is among others.

Mr. President, also critical is the mass belief by Ghanaians that the minister of finance is doing very little to shore up confidence in the market. Nonetheless, but arguably so, there is a wide spread perception of him not doing much coupled on his attack on IMF. It is the belief of the finance minister that, going to IMF has a dire effect on the economy and that Ghana won’t seek any support from the IMF. AFAG finds it, inconsistent of him therefore, to lead the IMF negotiations or remain at office now that government is seeking a bailout. Mr. President it is time to present an economic recovery plan to the nation. IMF intervention would not be enough to salvage the situation.

Over the period, you have not also addressed the country. We find this highly unusual based on how in the past you have fostered cooperation from Ghanaians through your frequent addresses during the Covid crisis. We will need you to reduce anxiety in the system and let Ghanaians know of the “whys” and “hows”.

RESOLUTION:

● The minister of finance must be reassigned

● some forex restrictions targeted at persons undermining the system from the central bank through the commercial banks to the unlicensed forex operators

● investigate the banks and prosecute officials engaged in forex trading

● imposse import restrictions on selected items

● engaging multinational companies, business ventures contributing to the capital flight.

● restricting export of forex to a certain level atleast in the next 6 months.

● Ensuring that traders who export US dollars from Ghana in the year has imported about equal amount to the country. ● Encourage Ghanaians to understand why the current rates are artificial and how they will trade at a loss when the market settles and the cedi benchmarks to the US Dollar at it’s real value.

Signed AFAG LEADERSHIP

Source: Opemsuo.com/ Emmanuel Owusu Anti