{"id":8379,"date":"2024-05-17T00:05:53","date_gmt":"2024-05-17T00:05:53","guid":{"rendered":"https:\/\/sotnews.agency\/?p=8379"},"modified":"2024-05-17T00:05:53","modified_gmt":"2024-05-17T00:05:53","slug":"using-natural-resources-to-control-cedi-depreciation-will-have-minimal-impact-economist","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=8379","title":{"rendered":"Using natural resources to control cedi depreciation will have minimal impact \u2013 Economist"},"content":{"rendered":"
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\n \t<\/i> Read Time:<\/span>1 Minute, 51 Second <\/div>\n\n <\/div>

Professor Lord Mensah, an Economist at the University of Ghana, Legon, has expressed scepticism about the effectiveness of using the country\u2019s natural resources to back the cedi.<\/p>\n

According to him, the impact on the Ghana cedis will be minimal.<\/p>\n

This comes after the Director of Research at the Institute of Economic Affairs (IEA), Dr. John Kwakye, called on the government to consider methods of acquiring full ownership of Ghana\u2019s natural resources to utilize them to back the cedi to fortify its value.<\/p>\n

During an interview on Eyewitness News<\/strong> on Citi FM<\/strong> with Selorm Adonoo, Prof. Mensah referenced the government\u2019s gold for oil policy, questioning its impact on the cedi\u2019s value.<\/p>\n

\u201cW<\/span>ith or without the Gold for Oil policy, we will still\u00a0<\/span>be having<\/span>\u00a0the cedi depreciation. We need to ask ourselves what is the component of the exchange rate demand when it comes to oil and then neutralising it with gold. And again, gold price on the global market is stable<\/span>,\u00a0<\/span>that<\/span>\u00a0is what<\/span> we need to appreciate, so, respectively, <\/span>we<\/span> were trying to use natural resources to control the dollar <\/span>but<\/span>\u00a0its impact<\/span>\u00a0I\u00a0<\/span>can tell\u00a0<\/span>you<\/span>\u00a0is very\u00a0<\/span>minimal,<\/span>\u201d\u00a0<\/span>he stated.\u00a0<\/span><\/p>\n

Prof. Mensah also pointed out the underlying issues of political will and discipline as contributing factors to the economic challenges.<\/p>\n

\u201cA<\/span>s we have the association of rice\u00a0<\/span>importers<\/span> go and ask them,\u00a0<\/span>some<\/span>\u00a0of them are in parliament as we speak. So,\u00a0<\/span>at the end of the day,<\/span>\u00a0it has to do with the lack of political will and\u00a0<\/span>also<\/span>\u00a0the discipline and commitment to ensure that we solve the problem in the country. Because you may think that you are benefiting from the depreciation of the cedis because you are importing\u00a0<\/span>but<\/span>\u00a0<\/span>indirectly<\/span>\u00a0one way or the other, you are reducing your capital,<\/span>\u201d\u00a0<\/span>he stated.\u00a0<\/span><\/p>\n

\u00a0<\/p>\n

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The post Using natural resources to control cedi depreciation will have minimal impact \u2013 Economist<\/a> appeared first on Citinewsroom – Comprehensive News in Ghana<\/a>.<\/p>

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Professor Lord Mensah, an Economist at the University of Ghana, Legon, has expressed scepticism about the effectiveness of using the country\u2019s natural resources to back the cedi. According to him,… <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[12],"tags":[],"class_list":["post-8379","post","type-post","status-publish","format-standard","hentry","category-business"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/8379","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8379"}],"version-history":[{"count":0,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/8379\/revisions"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}