$2bn Injection, IMF All Short Term . . . Set Pride Aside & Seek Long Term - Governance Consultant Tells Gov't
Dr Richmond Atuahene, a banking and governance consultant says the US$2billion intervention to save the cedi is a short term measure.
The government plans to inject US$2billion into the economy to shore up the strength of the cedi against major trading currencies in the country.
Even though Dr Atuahene believes it's a good call, he has asked government to look for a medium or long term measure.
Speaking in an interview on Peace FM's morning show 'Kokrokoo', the banking expert said if the nation continue to import everything, the cedi will certainly depreciate.
" . . we import everything and so demand of the currency is high but the supply is limited. That intervention is good but we need to look at the medium and long term measures . . . Let's put aside pride, bring people together and think of how best to change the structure of the economy or else countries will leave us behind," he urged.
IMF Short term
There have been reports that the government is likely to go to IMF for money to save the economy.
However, Dr Atuahene believes going to IMF will also be a short term measure.
"The problems are not insurmountable. We can turn things around in a year or two if the right measures are put in place . . . even if we go to IMF, they will help us in a short term and then what happens afterward? But we need a long term . . . we need a productive capacity. Let’s all think of restructuring the economy from a foreign base to a local base," he said.
Tighten your belt
Meanwhile, he has asked government to also tighten it's belt since Ghanaians can't do it alone.
"We need fiscal discipline; even if we need to consolidate some of the ministries we should; we need to tighten our belt," he averred.
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