Lack of market confidence leading to Cedi free fall – Analyst

The lack of confidence in Ghana’s market is one of the issues affecting the performance of the Cedi against the Dollar, Director of Research at the Institute of Economic Affairs (IEA) Dr John Kwakye has said.

He has proposed to the government to take very drastic confidence-building measures to stop the fall, including severe cuts in spending, cuts in staff and changes to economic management team.

In a tweet, Dr John Kwakye asked the economic managers to sit together and come up with a strategy to address the astronomically rising prices and introduce some relieving measures before the situation gets out of hand.

“We cannot continue to wait on Washington!” he said.

Regarding the 40.4 per cent inflation rate as announced by the Ghana Statistical Service (GSS) on Wednesday November 9, he said the 40.4% year-on-year inflation for October is no where near the real inflation Ghanaians are experiencing.

“Many prices have indeed more than doubled in the last few months. But is there now way out? Is there no relief for us?”

The Government Statistician Professor Samuel Anim has announced that inflation rate for October was 40.4 per cent.

He said at a press conference in Accra on Wednesday November 8 that the rate was at the back of increase in food prices.
Food inflation recorded the highest rate among all the components as against non food inflation according to the Ghana Statistical Service.

The increase by food inflation indicates a jump of more than 3 percent from the previous rate of 37.2.

S3news.com