You cannot save and invest carefully when cedi flips like a ‘yo-yo’ – Kwame Pianim

Economist Kwame Pianim has stated that the lack of a stable currency is hindering the needed investment and savings to boost the Ghanaian economy.

Speaking at the UPSA Annual Leadership Lecture, the astute statesman, detailed that the unstable nature of the currency continues to fuel speculation which creates a state of unease that causes a high demand for the United States dollars.

According to him, this reduces the value of investments and further jeopardises the fortunes of the economy.

“The Teacher’s Fund I helped established for them would have been valued at around one or two billion dollars fund if not for the mismanagement of the cedi; even though I think it is about $900 million now. So we need to stabilise the currency.

Mr. Mpianim opined the constant depreciation and uncertainty surrounding the cedi will encourage capital flights.

While he hoped for a Ghana without an 18th IMF programme, he cautioned government against continuous unsustainable borrowing, saying, the rapid level of borrowing is not good for the economy.

Ghana signed a deal with the International Monetary Fund (IMF) in December 2022 as the country sought to shore up its public finances and better manage debt to emerge from its worst economic crisis in decades.

The IMF in a press conference on Friday December 8, 2023 expressed optimism that a deal with Ghana and the Official Creditor Committee would be reached soon so that the Board of the Fund can begin the assessment process leading to the disbursement of the second tranche.

According to the Director of Vommunications, Jolie Kozack, “The Ghana government’s strong policy and reform commitments under the three-year $3 billion programme with the IMF is starting to bear fruit.”

The 2023 annual leadership lecture was held on the theme; Re-imagining Ghana’s development trajectory for a peaceful prosperous nation by 2057