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Exporting air, cause of cedi depreciation – Ken Thompson

Source: Myjoyonline.com Ken Thompson believes increased exports will save the cedi from its drastic fall. The Chief Executive of Dalex Finance has

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Source: Myjoyonline.com

Ken Thompson believes increased exports will save the cedi from its drastic fall.

The Chief Executive of Dalex Finance has exonerated the Bank of Ghana amid the recent depreciation of the cedi.

Ken Thompson said the central bank does not produce dollars and can only work with the resources available; giving an analogy that “the BoG can only make the soup with the meat they have.”

He told Daniel Dadzie on Joy FM’s Super Morning Show Thursday that more than 75% of containers that come into Ghana go back empty.

“The cedi cannot stabilise when you continue exporting air,” the finance expert stated.

Mr. Thompson believes the media should direct its arsenals at the Agric Minister, the Trade and Industries Minister and the Ghana Export Promotion Authority.

“Haul them before you and ask them what they are doing to fill those containers [when they are leaving Ghana’s ports],” he suggested.

He insisted that the percentage of exports should be the Key Performance Indicator (KPI) of every government.

“…because it [exporting air] destroys the value of the cedi and it doesn’t make sense. It is a crime,” he lamented.

“You cannot have a stable currency if you import everything. The only way we can stop the problem is to export ourselves out of it,” he added.

“If we solve that problem we stop it,” he said.

Speaking to traders, Mr. Thompson said instead of focussing on just their imports, they should invest in exports as well. “Look for something to export, even if it’s chewing stick,” he said.

He added that to cut their losses, traders should pay off their dollar debts or as quickly as possible.

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