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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 Slams Finance Minister and Bank of Ghana Over Escalating Exchange Rate Volatility

In a scathing critique that underscores the deepening economic woes facing Ghana, the Minority in Parliament has launched a blistering attack on Finance Minister Ken Ofori-Atta and the Bank of Ghana (BoG) for their handling of the country's turbulent exchange rates. The controversy, highlighted by the viral phrase "Abochi get the Dollar" – a pidgin expression alluding to the black market forex dealers (often called "Abokis") who are perceived to control dollar supplies amid shortages in formal channels – has ignited widespread public frustration. This phrase has become a symbol of the government's alleged failure to stabilize the cedi, as ordinary Ghanaians grapple with skyrocketing costs of imports, inflation, and a depreciating local currency.

The Minority's assault came during a heated parliamentary session where opposition MPs accused the Finance Minister and the central bank of incompetence, negligence, and a lack of proactive measures to curb the cedi's freefall against major currencies, particularly the US dollar. According to reports, the cedi has depreciated by over 20% against the dollar in the past year alone, exacerbating the cost-of-living crisis and eroding purchasing power for millions. Minority Leader Cassiel Ato Forson, a key figure in the opposition National Democratic Congress (NDC), led the charge, describing the situation as a "national embarrassment" and a direct result of misguided fiscal policies and poor monetary oversight.

Forson elaborated on the root causes, pointing to a combination of factors including high public debt, dwindling foreign reserves, and an overreliance on external borrowing. He argued that the BoG has failed in its mandate to regulate the forex market effectively, allowing parallel markets to thrive and dictate exchange rates. "The black market is now the real central bank," Forson quipped, referencing how informal traders, often operating in bustling markets like those in Accra's central business district, offer dollars at premiums far above official rates. This disparity, he claimed, is fueling speculation and further weakening the cedi. The Minority spokesperson on finance, Isaac Adongo, echoed these sentiments, accusing Ofori-Atta of prioritizing grandiose infrastructure projects and debt servicing over stabilizing the economy. Adongo highlighted recent data showing Ghana's foreign reserves at critically low levels, barely covering three months of imports, which has made the country vulnerable to external shocks such as rising global oil prices and the lingering effects of the COVID-19 pandemic.

Delving deeper into the criticisms, the Minority pointed to specific policy failures. They criticized the government's handling of the Domestic Debt Exchange Programme (DDEP), which they say has eroded investor confidence and led to capital flight. Under the DDEP, bondholders were compelled to accept haircuts on their investments, a move intended to restructure Ghana's unsustainable debt but which has instead spooked foreign investors and reduced inflows of dollars. Furthermore, the opposition lambasted the BoG for its interest rate policies, arguing that repeated hikes in the policy rate – now standing at around 30% – have stifled business growth without effectively taming inflation or stabilizing the currency. "Instead of addressing the fundamentals, the Finance Minister is busy borrowing more to pay old debts, creating a vicious cycle," Adongo stated, referencing Ghana's recent IMF bailout negotiations, which have yet to yield tangible results in curbing exchange rate volatility.

The phrase "Abochi get the Dollar" has gained traction on social media and in public discourse, symbolizing the frustration of everyday Ghanaians who find it increasingly difficult to access foreign currency through banks. Stories abound of businesses unable to import raw materials, students struggling to pay overseas fees, and travelers facing exorbitant rates at forex bureaus. In one illustrative anecdote shared during the parliamentary debate, a Minority MP recounted how a constituent, a small-scale importer, had to resort to black market dealers to secure dollars for essential goods, paying rates as high as 15 cedis per dollar compared to the official interbank rate of around 13 cedis. This not only inflates costs but also encourages illicit activities, undermining the formal financial system.

The Minority's critique extends beyond immediate exchange rate issues to broader economic mismanagement. They accused the Akufo-Addo administration of fiscal indiscipline, citing ballooning expenditures on projects like the National Cathedral and the Agenda 111 hospitals, which they claim have diverted funds from critical areas such as reserve building and export promotion. Forson called for an urgent parliamentary probe into the BoG's operations, demanding transparency on how forex reserves are managed and why interventions in the market have been ineffective. He proposed alternative measures, including aggressive promotion of local production to reduce import dependency, incentives for remittances (a major source of dollars for Ghana), and stricter regulations on forex hoarding by speculators.

In response, government officials have defended their actions, though the article notes a lack of detailed rebuttals in the immediate session. A deputy finance minister reportedly dismissed the criticisms as "political grandstanding," insisting that global factors like the Russia-Ukraine war and post-pandemic recovery challenges are the primary drivers of the turbulence. The BoG, in a separate statement, affirmed its commitment to stabilizing the cedi through targeted interventions, such as injecting dollars into the market and cracking down on illegal forex trading. However, these assurances have done little to quell public discontent, with economists warning that without structural reforms, the cedi could depreciate further, potentially reaching 20 cedis per dollar by year's end.

The exchange rate crisis is not isolated; it reflects deeper structural vulnerabilities in Ghana's economy. Historically, the cedi has faced periodic depreciations, notably during the 2014-2016 period under the previous administration, but the current turbulence is compounded by a debt-to-GDP ratio exceeding 100% and inflation hovering above 40%. Experts cited in the discussion emphasize the need for diversification away from commodities like cocoa and gold, towards value-added industries and technology. The Minority urged the government to prioritize these reforms, warning that continued volatility could lead to social unrest, as seen in recent protests over fuel prices and living costs.

Public reaction has been swift and vocal. On platforms like Twitter and Facebook, Ghanaians have shared memes and videos mocking the government's economic stewardship, with "Abochi get the Dollar" trending as a hashtag. Civil society groups, including the Ghana Trades Union Congress, have joined the fray, calling for accountability and immediate action to protect workers' salaries from erosion. Economists from institutions like the University of Ghana have weighed in, suggesting that a more independent BoG and fiscal rules to cap borrowing could prevent future crises.

In conclusion, the Minority's onslaught highlights a pivotal moment in Ghana's economic narrative, where exchange rate instability serves as a litmus test for governance. As the cedi continues its downward spiral, the pressure mounts on Ofori-Atta and the BoG to deliver concrete solutions. Whether through enhanced forex management, debt restructuring successes, or broader economic diversification, the path forward demands urgent, bipartisan efforts to restore confidence and stability. Failure to act, as the opposition warns, could deepen the divide between the formal economy and the shadow markets where "Abochi" reigns supreme, ultimately burdening the average Ghanaian with the costs of inaction.

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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 ]