The leader of the Alliance for Revolutionary Change (ARC), Alan Kwadwo Kyerematen has announced plans to actively promote exports and reduce imports in Ghana.
He believes that the current balance of trade is draining the economy and that none of the current leaders is addressing or proposing solutions to this issue.
Mr Kyerematen emphasised that increasing the supply of foreign exchange by promoting exports and reducing imports is crucial.
Speaking during the launch of his great transformation Agenda he stated, “How many times have you heard a Ghanaian Head of State talk about export? But at last, if you want to stabilize your currency that is the only solution because it is only when you have a consistent and substantial flow of foreign currency that is chasing the dollar that you can stabilise your local currency.”
He explained that this policy could lead to a significant reduction in the depreciation of the cedi, stabilising it within a maximum period of one year.
Regarding low inflation, he suggested fixing the foreign exchange rate for the importation of strategic commodities such as petroleum and essential medicines below the prevailing market rate as a short-term policy measure. This would reduce the impact of the cedi’s depreciation on the prices of these crucial goods.
“As a country, we have no choice but to import petroleum products until we start adding value to our oil and gas resources.”
“If your cedi is depreciating and you allow the exchange rate, the depreciating rate to influence the price of petroleum products, then obviously the prices of all goods because the multiple effects of petroleum will always be on the rise, so you have to ring-fence the depreciation of the cedi in respect of the product, if we do this we will stabilise the currency,” he noted.