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.
Listen to him in the video below
Source: Rebecca Addo Tetteh/Peacefmonline.com
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@Josh, well said! Changing the structure of the economy isn't a 1-day thing. There are several areas where the country has fallen short which need to be clearly and thoroughly identified and the prescribed solutions religiously implemented, monitored, evaluated and revisions mad as needed. But, in the short term what can be done by govt to ameliorate (big english) pronto the so-called tough times only Ghana is currently facing. You will all be amazed the solutions to Ghana's issues and the dust these have been gathering over the years. We just continue to talk a good game.
Typical of Ghanaian professionals. Instead for him to suggest real practical solutions , he is rather explaining the causes and effects. Round table for you to go and drink tea? Tell us what we need to do now.
SO IT WAS NDC KWASI BOCTWAY, IMF STRUCTURAL ADJUSTMENT DURING RAWLINGS TIME THAT GHANAIANS WENT THROUGH SUCH A DIFFICULT TIME IN GHANA THIS MAN HAVE TAUGHT IN AMERICA KNOWS HOWS SERIOUS AMERICAN TAX LAWS WORK BUT ONCE THEY IN GHANA THEY PEDDLE DIFFERENT AGENDA AND SONGS SO GHANAIANS NEED TO ASK THEMSELVES WHY. BECAUSE IN AMERICA NO ONE ESCAPE THE TAX NET SO WHY GHANA ONLY 2 MILLION ARE PAYING TAXES OUT OF 30 MILLION IT MAKES ANY SHIVERS IN HIS SPINE WHY MOST GHANAIANS LEAVE FOR FREE. IS A QUESTION WE ALL NEED TO ASK.WHY THESE INDIVIDUALS SPEAK DIFFERENTLY WHEN THEY ARE IN GHANA BUT IN AMERICA THE SONG IS DIFFERENT. THIS HAVE EASY SOLUTION SO LONG AS WE KEEP IMPORTING ***barred word*** INTO GHANA THE CEDI WILL CONTINUE TO DEPRECIATE. WHY ARE WE IMPORTING RICE INTO GHANA THAT GHANA HAVE FERTILE LAND TO PRODUCE RICE DOES IT MAKE SENSE. WHY WE IMPORT FLOUR WHILES BRASIL, EQYPT GROW WHEAT WHICH GHANA CAN DO SAME ARE WE SERIOUS AS A NATION WHO IS THIS AGRIC MINISTER IS HE SRIOUS AS A LEADER, STOP PEASANT FARMING AND DO COMMERCIAL FARMING ZIMBABWEA USE TO DO COMMERCIAL FARMING AND THEY WERE BREAD BASKET OF SOUTHERN AFRICA UNTI THEIR ***barred word*** LEADER MUGABE STARTED TAKING THE LAND FROM WHITE FARMERS TO THE BLACKS WHO COULDN'T FARM ANYWAY MEANWHILE THESE BLACKS WERE WORKING FOR THESE WHITE FARMERS AT THAT TIME. GOVERNMENT SHOULD PUT HEAVY TARRIFS ON PRODUCTS THAT CAN BE GROWN OR PRODUCE IN GHANA TO STOP THIS ***barred word*** ELSE WE ARE DOOM AS A NATION AND OUR CEDI STRENTH. AGAIN FOREIGNERS WHO DOMINATES OUR MARKETS CANNOT IMPORTS THINGS THAT CAN BE PRODUCE IN GHANA ONLY LAZY PEOPLE OR NATION DOES THAT.
I couldnt agree with Dr. Atuahene more.