THE GHANAIAN CEDI, A FRESH START

After seeing a tweet from citifm regarding a professor from Yale's input on our failing currency, my first reaction was " chop your house matter !". But then, after actually opening and reading the embedded link in the tweet my reaction was " To some extent, i agree with him". I am not here to prove nor disprove the saying that the human mind is subject to change. I want to use this blog-post to appeal to Ghanaians to think this through.

From what i understand, Inflation occurs when the central bank isn't able to fully regulate the money in circulation in a country and one of Ghana's major problems is the high inflation rate which seems to swell in little time.If this notion is right, to solve one of the major problems the country is facing, we need to ensure that the right structures are in place and fully functional. In the article, he mentioned that Hong Kong is a country which adopted this approach and we can all bear witness that their approach has brought them a lot of good fortune. Panama i know for a fact is another country that adopted this way. the Balboa which is the official currency of Panama enjoys a 1:1 ratio with the US dollar and a 1:3.62 ratio with the Ghanaian cedi. There are 9 countries who also went via this route. I can mention names but it will be irrelevant as of this time.

Here's a dumb thought! let's scrap our currency, introduce the dollar and fix our beloved cedi in the background. put all the required structures in place and prevent it from happening again,  re-introduce it when it's fit to play with the world's leading econmies at an exchange rate of 1:1 with the world's strongest currency which is the US dollar. yeap that will make us the strongest currency for some time at least.
Not only will this solve our problem, this will give our future leaders the right experience to handle future situations like this. as they say, experience is the best teacher.

Which is better, you're going to work in the morning and you find out your car is low on fuel due to a leak in the fuel tank. You have another car with fuel at your disposal. Now, the second car can take you on your rounds and back whilst your driver who you pay irrespective stays back to go and fuel the car and make sure the fuel tank isn't leaking so as to prevent the problem next time around. The driver in consultation with the mechanic bring out a proposal on all the evident and possible ways of preventing the leak next time. Your children were around all of this and will know what to do next time around. What will you do, try and go on your rounds with the first car or go with the second car and hand over the first car to your driver to deal with the mechanic and teach your children what to do in the process?

Cheers!