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We need to be more disciplined in public spending - Albert Essien

By Myjoyonline.com
General News We need to be more disciplined in public spending - Albert Essien
OCT 2, 2015 LISTEN

The outgoing Chief Executive Officer of Ecobank Transnational Incorporated, says Ghana’s economy is moving in the right direction.

Mr. Albert Essien said the government has now gotten its act together and with the IMF programme underway, the prospects look bright.

He, however, said it will take some time before the benefits are clear for all to see.

“I think most of us are a bit frustrated; we want it as quick as possible, but people need to know that when something goes down, it takes quite some time to rebuild,” he told Joy FM's Super Morning Show, Friday.

He said whilst things are moving in the right direction, “we need to stay focused, we need a lot more discipline especially in terms of spending.”

Government has been faulted for spending more money than it raises, creating huge fiscal deficits over the years.

This year, government projects to end the year with a budget deficit of about 7.3 percent.

Analysts have insisted this is not sustainable and only creates more problems for the economy.

Mr. Essien said a lot must be done to rein in spending.

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Commenting on the local currency, the cedi, which has wobbled for the most part of this year and the year before, the celebrated banker said, “I believe in a much more stable exchange rate regime rather than a stable nominal rate.”

The Central Bank has had to pump in millions of dollars to strengthen the wobbly cedi.

Deputy Finance Minister, Mona Quartey, has previously said that government expects the cedi-dollar exchange rate stay at 3.5 cedis to the dollar.

Mr Essien said, “I would love to see us have a stable exchange rate regime where perhaps it moves within certain bands for predictability rather than to say the cedi should be 3.5 to the dollar and defend 3.5 to the dollar.”

He said, “Now there will be money to defend the cedi but can that be sustained”?

Pumping money from the Central Bank to shore up the cedi, he maintained, can only be a temporary solution.

“Ultimately, we need to work to have the cedi float within a certain band,” he asserted.

The celebrated banker discussed his illustrious career, his family and school days on the morning show.

Asked what his parting advice would be for persons wishing to rise to the pinnacle of their career like him, Mr. simply said they should be guided by "discipline, focus, passion, above all, humility."

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