CUT GOVERNOR ASIAMA SOME SLACK โ CEDIโS STRENGTH BEYOND INJECTION KERFUFFLE
In the 8 years of the Akufo-Addo/Bawumia/NPP government, they injected a staggering $11 Billion into the forex market to stimulate and to stabilize the CEDI.
Up to the end of 2022, over $7 Billion was injected and the remaining two years saw stimulation packages of $4.1 Billion.
Averagely, the NPP government injected $1.39 Billion annually into the management of the Cedi.
It was this phooey of an economic strategy that propelled Dr. Mahamudu Bawumia to hysterically to infamously announce the โarrest of the dollarโ and its โkeys handed to the IGPโ.
If there was any political scam of the decade (2010-2020), that would have been it since the entire fabric of our lives depend on buying and selling.
Despite these forceful injections through contracted loans from the Eurobond market, the desired outcome eluded the entire country.
Disastriously, those committed loans were to be serviced with interest for years to come having lost the investments made with them.
You would recall the NDC handed a rate of ยข3.2 to the NPP at the end of December 2016 yet their management rather festered the woes of the Cedi.
On top of this was the inauguration of the 40-member committee tasked to fact-find the indicators behind the chaskele dance of the Cedi and the inordinate dwarfing of same.
It then suffices to say, the erstwhile NPP government was very personal on the Ghanaian CEDI and its appreciation against major currencies.
Regardless their efforts, the CEDI kept telling them they were not doing it right. YES!
The economic management team was BOGUS!
$11 Billion forex injections were BOGUS!
40-Member CEDI committee work was BOGUS!
Bawumiaโs economic wizardry and magic wand were BOGUS!
And the Central Bank itself became BOGUS!
With the above highlighted, the question then is, what is the Mahama/Nana Jane/NDC government doing that the NPP didnโt do having attempted all the strategies to strengthen the CEDI?
That should be the question and stop underrating the work of Dr. Johnson Pandit Asiama and his team of experts at the Bank of Ghana.
Cut him some slack! The mere injection of forex liquidity cannot stimulate nor stabilize the Cedi. If it does, then the NPP has to cough up our $11 Billion and answer pressing questions.
Aside the injection โ for nothing at all and to base on what is foreseeable โ there is fiscal discipline, frugal expenditure, essential investments, prudent management and tactful monetary policy.
These were missing key factors under the 8 years of the NPP!
What we witnessed were the GHยข77 Billion freshly printed cash, luxurious and oligarchic lifestyle, reckless borrowing, maladministration, misgovernance and economic mismanagement.
Thank God for the GoldBoD, the forex liquidity is not a loan that hangs as albatross around the neck of taxpayers.
Whether it succeeds or not (far be it though), it has no future debt obligation on Ghanaians unlike the unthinkable $11 Billion the NPP took from the bond market.
Christmas is coming and the injection could only be strategic.
And again โ not for what I can attest to โ but for the past two decades, no government has managed the Cedi to appreciate than when it was inherited.
Kufuor left it at ยข1.2 in December 2008 shortly after the redenomination.
Under Mills in 2012, the rate was ยข1.8
When Mahama exited in January 2017, the rate was ยข3.2
Akufo-Addo left the aisle leaving it at ยข14.7
So yes, Mahama returning to power and overseeing the Cedi managed to 10.6 is not only a good news but unprecedented as well.
There is no sloganeering, litanies of praises and sheer PR but the secrecy of the work is manifested in public.
God bless Dr. Cassiel Ato Forson, Dr. Johnson Asiama, Lawyer Sammy Gyamfi and the team that is working behind the scenes to put smiles on the faces of the ordinary Ghanaian.
Aban Papa Aba!!
#AbanPapaAba