Dr. John Kwakye, the Director of Research at the Institute of Economic Affairs (IEA), has voiced strong criticism against the Akufo-Addo government's strategy of depending on funds from international institutions like the International Monetary Fund (IMF), World Bank, and other donor agencies to shore up the local currency, describing it as a “lazy man's approach.”
Speaking at an IEA press briefing analyzing the recent Monetary Policy Committee meeting of the Bank of Ghana (BoG), Dr. Kwakye highlighted the government's heavy reliance on foreign aid, including Eurobonds and cocoa syndicated loans, as an unsustainable practice. He expressed concerns that the pressure on the cedi would resurface when the loans are due for repayment.
Despite the BoG Governor's assertion of the cedi's recovery, Dr. Kwakye pointed out that the currency has continued to depreciate, reaching nearly GHS13 to the dollar. He emphasized that relying on external funds to bolster the cedi is not only unsustainable but also represents a lazy approach to currency stabilization.
Dr. Kwakye proposed alternative strategies for stabilizing the cedi, including increasing foreign exchange (FX) earnings through greater ownership and value addition to natural resources, reducing import demand through domestic industrialization, and enforcing fiscal and monetary discipline.