Constituting FX committee means you have no confidence in BoG-Economist

Dr. Sidi Ali

A senior Economist at the Institute of Chartered Economy Ghana, Dr. Sidi Ali has said, the decision by the Finance Ministry to constitute a forty-member committee to look into the causes of the depreciation of the cedi and propose solutions to the problem is a clear sign that they have no confidence in the central bank.

Dr. Ali questioned why the executive have failed to implement the report of the Bank of Ghana over the years, yet they tend to inaugurate this committee to portray that the central bank has failed on its mandate.

He told Akua Nyarko Abronoma, host of Dinpa anopa bosuo on a Sunyani based Dinpa 91.3FM Tuesday January 21 when commenting on the inauguration of the FX committee.

The establishment of the committee, named the FX Developments Committee, is in fulfilment of a promise made by the Finance ministry last year to constitute a bi-partisan committee to look into the problem and help address it.

The Deputy Finance Minister, Charles Adu-Boahen who inaugurated the committee said it will work to complement the efforts of the Bank of Ghana in curtailing the usual poor performance of the cedi against other major foreign currencies.

Dr. Sidi Ali explained that, “the Bank of Ghana after looking into the causes of the depreciation of the cedi, takes their report to the finance committee in Parliament, then to the Auditor General(A-G)

“The two groups extensively deliberate on the possible solutions recommended by the central bank. I can say that, you can’t compare the duties to be discharged by the 40-member FX committee to that of the two groups.

“The Finance Committee and the A-G are incredibly good but the executive has failed to ensure the recommendations are implemented.”

Commenting on the possible solution to stabilizing the depreciated cedi, Dr. Ali said, monies borrowed should not be used for consumption such as; paying salaries of workers and providing logistics for institutions.

He suggested that, monies borrowed should be used to construct good roads that would help the government erect toll booth and raise revenue or invest in the Tema Oil Refinery (TOR) to help export oil.

Listen to the voices of Dr. Sidi Ali Below

Ghana/ Nyarko Abronoma

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