The Falling Cedi

The ailing economy does not appear to be responding to treatment as the Cedi builds a worrying resistance to the recent Bank of Ghana remedying prescription.

If only the truth would be told Ghanaians in a manner devoid of propaganda, perhaps, all would lend their support – regardless of their political affiliations – towards shoring up the Cedi.

The love to deny the realities on the ground continues to be relished by government officials whose schedule includes managing the Cedi to remain afloat.

We have taken note of the World Bank warning to the managers of the economy to be mindful about the country's growing fiscal deficit, pointing at a lurking danger, should the figure exceed ten percent of Gross Domestic Product (GDP).

Something should be wrong somewhere if after this impression by the World Bank local authorities continue to live in denial, claiming that there is nothing unusual about the current situation, as they tickle themselves by pointing at Ghana's circumstances as challenges and not crisis.

The World Bank warning ties in with Dr. Mahamudu Bawumia's. We ignore the Bretton Wood financial institution's warning at our peril.

We do not need to be experts in fiscal matters to understand the precarious situation of the country. After all, when our purchasing power suffers dwindling value we feel it in relation to our real income. We do not need to be told by macroeconomists that something is wrong with the economy to appreciate the level of the ailment the country is suffering.

The negative reading from the World Bank and the International Monetary Fund echoing somewhat the concerns raised by some local respectable financial institutions, is coming at a time when the Bank of Ghana's observation about the recently introduced measures to save the Cedi is anything but delighting. We have observed that the Governor of the Bank of Ghana was highly diplomatic in his recent remarks to journalists about the Cedi after the Monetary Monitoring Committee meeting.

Given the prevailing situation we are in, Mr. Henry Wampah could not have chosen brusqueness in his remarks about the Cedi's response to the apex bank's prescription. It was not surprising therefore when he said that although the local currency was doing well against the backdrop of the new measures, the authorities were not satisfied.

It was a clever way of expressing disappointment at the challenges being posed by the Cedi, even after the unfurled measures. We are in a better position to state it as it is and we proceed to do that without fear or favour: the situation is dire as the Cedi develops a strong resistance to the treatment being administered on it.

If there is any flicker of light at the end of the tunnel, this has been dimmed by the incessant lies about the state of the economy and a sickening denial at the highest level of government.