Cedi depreciation: How significant are the arrests?

Dear Editor,

I read in the news recently how officials of the Bank of Ghana (BoG) and security operatives descended on some illegal forex traders in Accra.

Report indicated that over 70 individuals and entities engaged in the business of buying and selling foreign exchange without licence from (BoG) were arrested. Areas such as the Rawlings Park, Makola, and Tudu in the Central Business District of Accra were ‘raided.’

The law enforcers and the BoG indicated that the ‘black market dealers’ were contributing to the rapid depreciation of the Cedi to the dollar and major foreign currencies, therefore, the operation was part of ‘strategies’ to sanitise the foreign exchange market.

Seeing pictures of some of the ‘illegal operators’ in handcuffs, I wondered if those who led the exercise were honest in explaining the exact motive of the arrests.

For me, it all amounts to window dressing of the exact causes of the Cedi depreciation, which stares at us all. If, indeed, illegal forex traders were contributing to a fall in the Cedi, why wait until September 2022, to arrest these people who have been operating since Adam?

Again, I wonder how long it would take to arrest all the people trading on the black market for the fragile Cedi, to compete favourably with other currencies.

The arrests would yield an insignificant result, even if it is considered one of the solutions. Our leaders should admit that their foot is no longer on the pedal when it comes to managing the economy, and that politicising cedi depreciation and other economic situations solve nothing.

George Ofori Nkoom,

Larteh-Akwapim, E/R