Cedi depreciation: Order your appointees to release FX stashed in their homes -Ato Forson tells Akufo-Addo
Minority Leader, Dr Cassiel Ato Forson, has urged President Nana Akufo-Addo to promptly instruct his appointees who have hoarded Foreign Exchange(FX) to release them.
He emphasized the urgency of this directive to mitigate the depreciation challenges faced by the Ghanaian cedi.
“We call on the Akufo-Addo government to among others order his appointees to release the FX stashed in their homes,” he said.
The Ghana cedi has continued to lose ground to the major trading currencies this week on the back of persistent corporate demand.
The cedi has depreciated by 17.32% year-to-date to the dollar.
At present, the local currency now trading between GH₵14.50 to GH₵15 to the dollar, traders have indicated that they are passing the increased costs onto consumers, leading to a notable rise in the prices of goods and services.
The free fall of the cedi has caused significant distress among traders nationwide, who are reporting severe impacts on their businesses.
Many in the business community are increasingly troubled.
The Food and Beverages Association of Ghana (FABAG), The Ghana Union of Traders Association(GUTA), and other business associations have highlighted that the prevalent business model of selling on credit has exacerbated the problem, as importers struggle to repay their debts.
Dr. Ato-Forson addressing the media during a press conference held on Wednesday, May 15, reiterated his stance that these appointees have intentionally stored foreign exchange for their gain.
He emphasized the detrimental impact of such actions on the Ghanaian economy.
Dr. Ato Forson accused government appointees of prioritizing their interests over the well-being of the Ghanaian economy.
He stressed the importance of immediate action from President Akufo-Addo to prevent further harm to the country’s currency.
A notable case of FX stashed at home involves two housemaids of Cecilia Dapaah, former Minister of Sanitation and Water Resources, together with five others accused of stealing $1 million, 300,000 euros, and various properties valued at millions of Ghana cedis from the home of the minister.
Patience Botwe and Sarah Agyei, the two housemaids have been charged with conspiring and stealing a total of $410,000, €300,000, and GH¢350,000 from the former employers, leading to Madam Dapaah resigning from her position following public outcry.
Benjamin Sowah, Malik Dauda, Christiana Achab, Job Pomary, and Yahaya Sumaila, are facing charges of dishonestly receiving a total of GH¢4,010,000 and $14,000 from the housemaids.
According to the Minority leader, his remarks underscore the growing concern over the depreciation of the Ghanaian Cedi and highlight the need for decisive measures to stabilize the currency and safeguard the economy.
The Minority leader further criticized the government’s decision to borrow GH¢7 billion from the treasury bills market to settle contractor payments that were not accounted for in its budgetary allocations.
According to him, this action sets a worrisome precedent of exceeding budgetary limits that are predicated on political motives exacerbating the depreciation of the Cedi against the dollar.
“They are on an expenditure spree, spending money as if there is no tomorrow. In the last few days, we are aware that they have paid approximately GH¢7 billion to contractors, off-budget contractors, off-budget expenditures, GH¢7 billion.”
“They borrowed from the T-Bill market, so they borrowed the money from ordinary Ghanaians then they paid this money to these contractors, and the contractors are also not certain so they have engaged in currency substitution.”
“The contractors got cedis and went and changed it into US dollars and kept the money because of a lack of confidence in the economy.”