{"id":131771,"date":"2015-07-06T10:34:57","date_gmt":"2015-07-06T10:34:57","guid":{"rendered":"http:\/\/4cd.e16.myftpupload.com\/?p=131771"},"modified":"2015-07-06T14:42:50","modified_gmt":"2015-07-06T14:42:50","slug":"20-million-cash-injection-wont-stabilize-cedi-economist","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/?p=131771","title":{"rendered":"$20 million cash injection won\u2019t stabilize cedi \u2013 Economist"},"content":{"rendered":"<p style=\"text-align: justify;\">The Executive Director of the Institute for Fiscal Studies (IFS), Professor Kwadwo Kusi has downplayed the impact of Bank of Ghana\u2019s move <span style=\"color: #666699;\"><strong><a style=\"color: #666699;\" href=\"http:\/\/4cd.e16.myftpupload.com\/2015\/06\/26\/bog-to-release-20-million-daily-to-stabilise-cedi\/#sthash.X3FZsdcd.O2lkkd1M.dpbs\" target=\"_blank\">to inject $20 million daily<\/a><\/strong><\/span>\u00a0into the money market to stabilize the cedi.<\/p>\n<p style=\"text-align: justify;\">According to him the Central Bank is refusing to tackle the real cause of the poor performance of the cedi against the major trading currencies.<\/p>\n<p style=\"text-align: justify;\">[contextly_sidebar id=&#8221;nsktDLvdJ3Ptb91Po6MWTbsPhKrK2ras&#8221;]In 2015 year alone, the cedi has depreciated in excess of 20 percent.<\/p>\n<p style=\"text-align: justify;\">The\u00a0Central bank is pumping in more dollars to improve the situation.<\/p>\n<p style=\"text-align: justify;\">The former economic advisor to government Professor Kusi however noted that the move will not work.<\/p>\n<p style=\"text-align: justify;\">He observed that \u201clast year, when it happened like that, Wampah was pumping $20 million into the system.\u201d<\/p>\n<p style=\"text-align: justify;\">\u201cPumping 20 million a day is not the solution,\u201d he said adding that what the Bank of Ghana has to do is to \u201cfind out why the cedi is depreciating.\u201d<\/p>\n<p style=\"text-align: justify;\">\u201cYou may say it\u2019s because demand more than exceeds supply, why is demand exceeding supply? We need to go back to address the core source of the cedi depreciation. Fiscal deficit, investors, everybody is losing confidence in the system.\u201d<\/p>\n<figure id=\"attachment_24930\" aria-describedby=\"caption-attachment-24930\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/4cd.e16.myftpupload.com\/wp-content\/uploads\/2014\/06\/658625460_Dr-Henry-Wampah.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-24930\" src=\"http:\/\/4cd.e16.myftpupload.com\/wp-content\/uploads\/2014\/06\/658625460_Dr-Henry-Wampah.jpg\" alt=\"Dr. Wampah is BoG Governor\" width=\"600\" height=\"599\" srcset=\"https:\/\/citifmonline.com\/wp-content\/uploads\/2014\/06\/658625460_Dr-Henry-Wampah.jpg 409w, https:\/\/citifmonline.com\/wp-content\/uploads\/2014\/06\/658625460_Dr-Henry-Wampah-150x150.jpg 150w, https:\/\/citifmonline.com\/wp-content\/uploads\/2014\/06\/658625460_Dr-Henry-Wampah-300x300.jpg 300w, https:\/\/citifmonline.com\/wp-content\/uploads\/2014\/06\/658625460_Dr-Henry-Wampah-70x70.jpg 70w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><figcaption id=\"caption-attachment-24930\" class=\"wp-caption-text\">Dr. Wampah is BoG Governor<\/figcaption><\/figure>\n<p style=\"text-align: justify;\">In a related development, financial analyst, Sydney Casely Hayford has accused the Bank of Ghana <span style=\"color: #666699;\"><a style=\"color: #666699;\" href=\"http:\/\/4cd.e16.myftpupload.com\/2015\/06\/27\/bog-is-lying-about-pumping-20-million-to-save-cedi-sydney\/#sthash.InXnfA6Z.dpbs\" target=\"_blank\"><strong>(BoG) of lying to Ghanaians<\/strong><\/a><\/span>\u00a0about the\u00a0injection of $20 million daily into the money market to stabilize the cedi.<\/p>\n<p style=\"text-align: justify;\">\u201cThey [BoG] are lying to us; they can\u2019t afford $20 million a day.\u201d<\/p>\n<p style=\"text-align: justify;\">Per his estimation, \u201c$20 million a day will translate to about $600 million in a month.\u00a0 Where is the money coming from? This is where the whole problem starts.<\/p>\n<p style=\"text-align: justify;\">The financial analyst argued that if the BoG can make $600 million in a month, then going for the bailout package from the International Monetary Fund (IMF) was not necessary.<\/p>\n<p style=\"text-align: justify;\">&#8211;<\/p>\n<p style=\"text-align: justify;\">By: Godwin A. Allotey\/citifmonline.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Executive Director of the Institute for Fiscal Studies (IFS), Professor Kwadwo Kusi has downplayed the impact of Bank of Ghana\u2019s move to inject $20 million daily\u00a0into the money market to stabilize the cedi. According to him the Central Bank is refusing to tackle the real cause of the poor performance of the cedi against [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":105563,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":[],"footnotes":""},"categories":[],"tags":[38,4],"class_list":["post-131771","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-palaver-newspaper","tag-st-augustines-college"],"_links":{"self":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/131771","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=131771"}],"version-history":[{"count":0,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/131771\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/media\/105563"}],"wp:attachment":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=131771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=131771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=131771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}