Dr. John Kwakye, Director of Research at the Institute of Economic Affairs (IEA), has advised President-elect John Dramani Mahama to take strategic steps to restore investor confidence in Ghana’s economy and stabilize the cedi.
According to Dr. Kwakye, one key measure Mahama should prioritize is constituting a team of experts to review Ghana’s current International Monetary Fund (IMF) program.
He emphasized that a thorough review would ensure that the program aligns with Ghana’s economic realities and growth objectives.
“Congratulations, President Mahama, for your bold, inspired, and hard-fought comeback. It is the hope of Ghanaians that you will use the second opportunity and your experience to bring about the necessary change to meet their aspirations through inclusive government”.
Dr. John Kwakye
Additionally, Dr. Kwakye recommended the establishment of an Economic Advisory Council (EAC) composed of independent, non-partisan professionals with strong expertise in economics, finance, and development.
The council, he noted, would provide objective guidance on critical economic decisions, helping the government to implement effective policies that promote stability, growth, and investor confidence.
Dr. Kwakye believes that these initiatives will signal Ghana’s commitment to fiscal discipline, sound economic management, and accountability—key factors that influence investor confidence and support sustainable economic recovery.
Kwakye Slams BoG Over Politically Driven Cedi Moves
Furthermore, Dr. John Kwakye criticized the Bank of Ghana (BoG) for what he perceives as a politically driven intervention in the foreign exchange market following the recent presidential election.
Dr. Kwakye observed that the BoG appears to have ceased its deliberate efforts to support the cedi just days after the election.
According to him, this sudden shift in strategy exposes the underlying political intent behind the central bank’s prior intervention.
Dr. Kwakye described the intervention as “irresponsible,” arguing that it prioritized short-term political interests over long-term economic stability.
He asserted that the BoG’s actions raise serious concerns about its independence and credibility as a regulator of monetary policy.
He stressed that such politically motivated interventions with the exchange rate could distort market dynamics, erode investor confidence, and weaken the cedi’s long-term stability.
Dr. Kwakye called for greater transparency and accountability in the BoG’s operations, urging the central bank to prioritize sound economic principles over political considerations.
“Is the World Bank money a loan or grant? If it’s the former, then we don’t need it. We have enough resources at home in the form of our natural resource wealth. If it’s a grant, however, then we can graciously accept it.
“Indeed, my critique of BoG and MPC is meant to sanitize and strengthen monetary policy management, which should help stabilize the economy and financial sector, contrary to Dr. Dawson’s argument”.
Dr. John Kwakye
Dr. Kwakye further criticized the Bank of Ghana (BoG) for what he described as an irresponsible act of engineering a steep appreciation of the cedi for political gain.
He argued that such actions undermine economic stability and public trust in monetary policy.
He further noted that the continued rise in inflation for November is a clear indication of the persistent failure of BoG’s monetary policy.
Dr. Kwakye expressed concern that some individuals will continue to defend the BoG’s missteps, suggesting that their defense is driven by “obvious reasons,” hinting at possible political bias or vested interests.
He argued that, contrary to BoG’s claims, the reduction in inflation from 54% to 22% was not solely a result of effective monetary policy.
Instead, he attributed the decline to measures aimed at addressing the demand side of the economy, which was significantly driven by BoG’s own monetary financing activities.
He explained that the excessive injection of liquidity into the economy by the BoG fueled demand pressures, thereby distorting the inflationary trend. “What remains is the supply/cost element, of which a tight PR is not the solution”.
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