Sat, 18 May 2024 Feature Article

Poor Alhaji Bawumia Exhibiting the Offbeat Dancing of the Cedi to the Dollar

Poor Alhaji Bawumia Exhibiting the Offbeat Dancing of the Cedi to the Dollar

The Ghanaian cedi’s continued depreciation under the stewardship of Vice President Alhaji Bawumia has been a significant concern for many citizens. Despite his initial promises to stabilize the currency, the cedi is now performing poorly, reflecting broader economic challenges.

This instability is exacerbated by the government’s outstanding obligations, including over $2 billion in unpaid external coupons and overdue payments to independent power producers.

One of the major initiatives touted to improve the situation, the Gold-for-Oil policy, has proven ineffective. The policy was expected to stabilize the cedi and reduce fuel prices, yet the currency continues to depreciate, and fuel costs are on the rise.

This outcome underscores the policy’s shortcomings and the broader economic mismanagement under Bawumia’s oversight.

The persistent decline of the cedi has far-reaching consequences for the Ghanaian economy.

Import prices have surged, leading to higher costs for goods and services, which in turn fuels inflation.

Inflation will then lead to erosion of purchasing power, particularly affecting lower-income households, exacerbating economic inequality, and placing additional strain on already vulnerable Ghanaians.

Ghanaian businesses also suffer from the cedi’s depreciation, as the increased cost of imported raw materials and goods can squeeze profit margins and limit growth.

Again, this environment can deter foreign investment, as investors seek more stable economic climates, further hampering economic development and job creation.

Given these challenges, many Ghanaians feel that Alhaji Bawumia’s leadership has fallen short of expectations. While some may forgive him for his lies, jokes, unfulfilled promises, and political rhetoric, the tangible impact of his economic policies on their daily lives is harder to overlook.

As a result, there is a growing sentiment that voters should hold him accountable at the polls for his inability to manage the cedi effectively.

In conclusion, I propose that we organize public debates for all prospective leaders of this country to present their strategies for addressing the foreign exchange problem.

Shalom shalom!