Odike Appeals to BoG Governor To Cap the Cedi, Lists 3 Reasons Ghana Does Not Need a Strong Currency

• Odike has stirred controversy following his recent comment about the Ghana cedi during an interview
• He called on the Bank of Ghana Governor to cap the cedi and opened up on the benefits associated with doing so
• Social media users who took to the comment section of the video shared varied opinions on the comments by Odike

Ghanaian businessman and politician Akwasi Addai Odike has raised what he believes to be downsides to the Ghanaian cedi's recent strong performance against the US dollar.

In a video sighted by YEN.com.gh on the TikTok page of @onuaonline, Odike, who was speaking in an interview on Yen Nsempa Show on Onua FM, told the host Nana Yaa Brefo that the cedi's strong performance against the dollar comes with its disadvantages.

Delving into the details, the founder of the United Progressive Party, who labels himself as a practising businessman, claimed that the strong performance of the cedi will drive away foreign investment.

He argued that persons desirous of setting up businesses in the country will now need more dollars to put up their establishments and keep them running.

"If you make the cedi so strong, it drives away Foreign Direct Investment. For example, if one cedi equals one dollar and someone earns GH₵4,000 a month, that is $4,000. Who will be willing to employ people and pay $4,000? No one will do it because cheap labour helps bring Foreign Direct Investment."

Odike further disclosed that the cedi's recent performance will also affect local manufacturers.

He explained his point of view, noting that a person entering the country to trade will likely look elsewhere, preferring to operate where the dollar is strong. As it stands, Ghana does not fit this profile.

"Again, we have local manufacturers where people from Nigeria and other countries come to buy from here, and the dollar cannot get the person more items. The manufacturers in Ghana will be at a loss."

He mentioned China in his analysis, claiming that the weak Chinese Yuan makes it easier for more people to view it as a preferred source for goods and services.

"I am a practical businessman. China deliberately devalued their money so they could industrialise. What made China famous was that it had a weaker currency and also produced more. Hence, if you go with the dollar, you can buy a lot more of their currency and get more things there. But if our currency becomes too strong, there are seven things that would go against this country."

Odike concluded by stating Ghana's quest for rapid industrialisation would not be achieved if the cedi is among the best performing currencies in the world, hence calling on the Bank of Ghana Governor, Dr. Johnson Asiama, to cap the cedi.

"I am appealing to the Bank of Ghana governor to cap the cedi, which is appreciating, because it has two sides of the coin."

Watch the video below:

Reactions to Odike's call for cedi's cap

Social media users who took to the comments section of the post shared varied opinions on Odike's argument.

Hello stated:

"I don't get you people ooo. When the dollar was going high, a lot of businesses exited the economy. So when it is low, too, investors will not come. Hmm, everyone has their own opinions."

Dr Aboagye stated:

"How much was the dollar against the cedi when Kuffour was in power? Economics is different from business."

Calm added:

"That’s exactly what the US is doing right now. They are devaluing the dollar just to have more exports since it now owes about $36 trillion, which could crush its economy."

Prophet shares prophecy on the cedi

Earlier, YEN.com.gh reported that a Ghanaian prophet opened up on a vision he had about the cedi.

Addressing his church members, Prophet John Anokye, took to the stage, stating that per his vision, the dollar would continue to drop until it reached GH₵5.

He said the Lord told him that He would help the economy stabilise.

Proofreading by Samuel Gitonga, copy editor at YEN.com.gh.

Source: YEN.com.gh