Blaming some politicians for cedis woes – Amoabeng

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The former managing director of defunct UT Bank, Prince Kofi Amoabeng, has criticized some Ghanaian politicians for contributing to the Ghana cedi’s woes in recent times.

According to him, some politicians are hoarding dollars, a situation that has caused the strong demand for the US greenback and the rapid depreciation of the cedi in 2022.

Speaking at the inaugural McDan Business Forum, he said some of Ghana’s exchange rate problems are caused by politicians who negotiate business in dollars.

“One thing that causes high demand for dollars is corruption. All the money they make and steal is not in cedis but in dollars.

They have to change dollars. So they hide it under their bed and when they have the chance, they put it outside, he added.

He also called Ghana’s exchange rate regime pathetic.

Ghana’s exchange rate regime is pathetic. The so-called politicians are the ones hoarding the dollars, but it’s seen there as if they weren’t the cause of it all. Corruption is part of our problem and we have to work on it.

The Ghana cedi ended 2022 as the second weakest currency on the African continent with a year-to-date loss of 38.86% against the US dollar, according to Bloomberg.

Overall, the local currency ranked 145th. Sierra Leone Leone came 146th while the Argentine peso and Sierra Lankan rupee ranked 147th and 148th respectively.

Mr. Amoabeng also advised Ghanaians to reduce their borrowing appetite, lamenting, Importation of goods is too much. So we have to make bold decisions to stop all of this.

Speaking on the likely cancellation of Ghana’s debt by some multilateral and bilateral partners, he welcomed the decision but wondered how it could save Ghana’s economy.

“So we have to if that’s the case then that’s fine, but we have to work on certain areas of the economy for sustainable growth,” he added.

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