Cedi depreciation: Tsikata proposes 'foreign exchange footprint' solution

Accra, Ghana - Renowned legal expert, Tsatsu Tsikata has proposed a solution to address the country's recurring Cedi depreciation.

At the 14th Leadership Dialogue, Tsikata introduced the concept of "foreign exchange footprint," a novel approach aimed at mitigating the impacts of Cedi devaluation and bolstering the nation's economy.

Tsikata, former Chief Executive of the Ghana National Petroleum Corporation (GNPC), highlighted the economic potential of the Ghanaian diaspora, noting that remittances from abroad often surpass mineral export revenue.

He emphasized the need to redefine how Ghanaians approach foreign goods consumption, drawing a parallel with assessing one's carbon footprint.

"The diaspora and indeed Africans beyond Ghana have a unique relationship with the country that can be economically beneficial," Tsikata explained on Wednesday, August 28, 2024.

The "foreign exchange footprint" concept encourages individuals to track and optimize their foreign exchange usage, promoting a collaborative approach between the government and citizens to stabilize the Cedi.

"We need to examine our individual foreign exchange footprint. By evaluating how much we depend on foreign products and identifying areas where we can switch to local alternatives, we can reduce our dependence on imported goods and strengthen local production," he explained.

Organized by the Centre for Social Justice, a left-of-centre think tank, the Leadership Dialogue Series aims to foster mass political participation and patriotic values through expert discussions and engagement with national leaders.

Tsikata's innovative proposal has sparked interest in finding solutions to Ghana's economic challenges.

Source : Lead News Online