The recent appreciation of the Ghana cedi has been largely attributed to improved fiscal discipline by the government, according to Richard Amamoo, Deputy Secretary General of the Ghana Union of Traders Association (GUTA).
Speaking on The Agenda, a current affairs programme on Atinka TV hosted by Bernard Lav, Mr. Amamoo stressed that consistent calls for fiscal discipline over the years are finally yielding visible results. He said the government’s prudent financial management appears to be stabilizing the economy and strengthening the local currency.
“At first, all we told successive governments was to keep fiscal discipline. That is the beginning of everything,” Amamoo said. “Where there is fiscal discipline, it checks the currency. You can’t spend what you don’t have.”
He noted that a disciplined approach to public expenditure helps restore confidence in the economy, adding that the signs of stability being witnessed now should not be taken for granted.
“If they can keep that formula in running the economy, we will have sustainability. But if this turns out to be cosmetic, it will only cause further disturbance,” he warned.
Amamoo also cautioned against complacency, emphasizing the need for consistent application of sound fiscal policies.
He urged the government to maintain current strategies that have contributed to the cedi’s recovery.
While acknowledging that multiple factors affect the strength of the currency, he reminded viewers of the accountability expected of government. “When the dollar was depreciating, we didn’t blame foreign governments — we blamed ours. So now that the cedi is appreciating, credit should go where it’s due,” he said.
Mr. Amamoo concluded by reiterating the importance of sustaining the current trajectory, warning that without long-term fiscal discipline, the recent gains could be reversed.
Ghana|Atinkaonline.com|Najat Adamu