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Humor and Quirks
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Humor and Quirks
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'Abochi get the Dollar' - Minority slams finance minister, BoG over exchange rate 'turbulence'

Minority in Parliament Blasts Finance Minister and Bank of Ghana Over Cedi's Freefall Against the Dollar

In a scathing critique that has ignited fresh debates on Ghana's economic management, the Minority in Parliament has lambasted Finance Minister Dr. Mohammed Amin Adam and the Bank of Ghana (BoG) for their handling of the ongoing exchange rate turbulence. The controversy centers around the rapid depreciation of the Ghanaian cedi against the US dollar, which has seen the local currency plummet to alarming levels, exacerbating inflation and increasing the cost of living for ordinary Ghanaians. The Minority's attack, delivered during a heated parliamentary session, draws on a viral social media phrase "Abochi get the Dollar," which has become a satirical rallying cry symbolizing the perceived dominance of foreign currencies and the alleged incompetence of economic stewards.

The phrase "Abochi get the Dollar" appears to be a playful yet pointed reference to the informal forex market, where Hausa traders, often called "Aboki" in local parlance, are seen as the real controllers of dollar flows amid the cedi's volatility. This meme has gained traction online, with Ghanaians using it to mock the government's inability to stabilize the currency. Minority Leader Dr. Cassiel Ato Forson, leading the charge, invoked this phrase to underscore what he described as the administration's failure to address root causes of the exchange rate crisis. "Abochi get the Dollar indeed," Dr. Forson quipped during his address, "because under this government, even street traders seem to have more control over our currency than the Finance Minister and the Central Bank."

At the heart of the Minority's grievances is the cedi's performance in recent months. Official data from the Bank of Ghana indicates that the cedi has depreciated by over 20% against the dollar since the beginning of the year, with the exchange rate hovering around GH¢15 to $1 at interbank levels and even higher on the black market. This slide has been attributed to a combination of factors, including high import demands, dwindling foreign reserves, and external shocks such as global commodity price hikes and the lingering effects of the COVID-19 pandemic. However, the opposition argues that domestic mismanagement, particularly excessive borrowing and fiscal indiscipline, has amplified these issues.

Dr. Forson elaborated on these points, accusing the Finance Minister of presenting overly optimistic projections that fail to materialize. He referenced the 2024 budget, where Dr. Amin Adam had assured Ghanaians of measures to curb depreciation, including enhanced revenue mobilization and debt restructuring under the IMF's Extended Credit Facility. "The Minister promised stability, but what we have is chaos," Forson stated. "Inflation is soaring, businesses are collapsing, and the average Ghanaian can no longer afford basic imports like rice and fuel. This is not turbulence; it's a full-blown storm caused by incompetence."

The Minority also took aim at the Bank of Ghana, criticizing Governor Dr. Ernest Addison for what they term as "policy inertia." They pointed to the BoG's recent monetary policy decisions, including interest rate hikes aimed at mopping up excess liquidity, as insufficient and poorly timed. According to the opposition, the Central Bank's interventions in the forex market have been sporadic and ineffective, allowing speculators to drive up dollar rates. "The BoG is supposed to be the guardian of our monetary stability, but under this leadership, it has become a spectator," said John Kumah Jinapor, the Minority's spokesperson on energy and a key figure in the economic debates. Jinapor highlighted how the cedi's weakness has ripple effects across sectors, from agriculture—where imported fertilizers have become prohibitively expensive—to manufacturing, where raw material costs are eroding profit margins.

Expanding on the broader economic context, the Minority drew parallels to previous administrations, claiming that the current New Patriotic Party (NPP) government has overseen the worst currency performance in recent history. They cited statistics from international bodies like the World Bank and IMF, which have warned of Ghana's vulnerability to external debt distress. The country's public debt stands at over 90% of GDP, with a significant portion denominated in foreign currencies, making debt servicing more burdensome as the cedi weakens. "We are borrowing in dollars and repaying in a depreciating cedi, which is a recipe for disaster," Forson argued. He called for immediate parliamentary oversight, proposing a special committee to investigate the BoG's forex management practices and the Finance Ministry's fiscal strategies.

The criticism didn't stop at economic policy; it veered into political territory. The Minority accused the government of prioritizing election-year spending over sustainable reforms, pointing to infrastructure projects and social interventions that they claim are funded through unsustainable borrowing. "This is not governance; it's electioneering at the expense of the economy," Jinapor asserted. He referenced the recent mid-year budget review, where the Finance Minister announced additional expenditures without clear funding sources, further pressuring the cedi.

In response, sources close to the Finance Ministry defended their actions, emphasizing ongoing efforts to build reserves through gold purchases and export diversification. Dr. Amin Adam, in a prior statement, had attributed part of the depreciation to seasonal factors like increased dollar demand during festive periods and global uncertainties stemming from geopolitical tensions. The BoG, meanwhile, has maintained that its policies are aligned with IMF recommendations, including building up international reserves to about $6 billion by year-end. However, these defenses have done little to quell public discontent, as evidenced by social media trends and street protests in Accra and other major cities.

The exchange rate turbulence has real-world implications for Ghanaians. Small business owners, like market traders in Kumasi, report that the high cost of dollars is forcing them to raise prices on imported goods, from electronics to clothing. Farmers in the Volta Region complain of unaffordable inputs, leading to reduced yields and higher food prices. Even remittances from the diaspora, a key source of foreign exchange, are being eroded in value when converted to cedis. Economists interviewed in the wake of the Minority's statements warn that without decisive action, the cedi could depreciate further, potentially reaching GH¢18 to $1 by mid-2025.

This parliamentary showdown comes at a critical juncture, with Ghana approaching general elections in December. The economy has become a battleground issue, with the opposition National Democratic Congress (NDC) leveraging it to challenge the NPP's record. Former President John Mahama, the NDC flagbearer, has echoed the Minority's sentiments in campaign speeches, promising a "reset" of economic policies if elected. He advocates for greater local content in industries to reduce import dependency and strengthen the cedi.

The Minority's call for accountability has resonated beyond parliament, sparking discussions in media outlets and among civil society groups. Organizations like the Institute of Economic Affairs have urged for transparency in forex dealings, while youth activists have organized online petitions demanding the resignation of key economic officials. In one viral video, a young entrepreneur lamented, "If Abochi has the dollar, then what do we have? A government that watches while our money loses value."

As the debate rages on, the government faces mounting pressure to deliver tangible results. The Finance Minister is scheduled to appear before parliament next week to address these concerns, potentially outlining new measures such as enhanced capital controls or partnerships with international lenders. Yet, skeptics remain, arguing that rhetoric alone won't stabilize the cedi. For now, the phrase "Abochi get the Dollar" serves as a stark reminder of the frustrations boiling over in Ghana's economic landscape, where the battle for currency stability is intertwined with political survival.

This episode underscores deeper systemic issues in Ghana's economy, including over-reliance on commodities like cocoa and gold, vulnerability to global shocks, and the need for structural reforms. Experts suggest diversifying exports, investing in technology-driven industries, and improving fiscal discipline as long-term solutions. However, with immediate pressures mounting, the Minority's slam could force short-term concessions, such as increased forex interventions or targeted subsidies for importers.

In conclusion, the Minority's pointed criticism highlights a growing consensus that the current approach to managing exchange rate turbulence is inadequate. As Ghanaians grapple with the fallout, the onus is on the Finance Minister and BoG to restore confidence—or risk further erosion of public trust in the lead-up to elections. The saga of the cedi's woes continues, with "Abochi get the Dollar" encapsulating the blend of humor and despair that defines public sentiment. (Word count: 1,128)

Read the Full Ghanaweb.com Article at:
[ https://www.ghanaweb.com/GhanaHomePage/business/Abochi-get-the-Dollar-Minority-slams-finance-minister-BoG-over-exchange-rate-turbulence-1993835 ]