Let’s see some action in dealing with black markets
Ghana still continues to grope in the dark, after more than 57 years of independence as it continues to struggle for the right economic mix to take itself out of the economic quagmire and underdevelopment.
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Presently, the Mahama-led administration is trying hard to promote the consumption of made-in-Ghana goods to stimulate local production and reduce the pressure on the cedi.
We commend the government for its efforts to champion the consumption of made-in-Ghana goods but we think there is more room for actualising such efforts. For instance, we should go beyond primary agriculture and into value addition especially to our exports to attract more revenue and de-emphasise such import-led economy as ours.
The Mirror believes it is about time the government took a look at streamlining our imports and restricted them to items beyond local capacity.
It is sad, indeed, that a land endowed with rich farmlands should spend billions of dollars to import food items, most of which can be produced locally.
Certainly, we must make a conscious effort to discourage imports of items we have comparative advantage over. Fact is there is no way the economy will rebound if we continue to import every conceivable item.
Fortunately we do not lack the necessary instruments and laws to turn things around. But it is amusing why we make the laws paper tigers without the teeth to bite without fear or favour.
Otherwise how do we explain the seeming apathy and helplessness by the Bank of Ghana towards checking the booming black markets, which to even the lay person do not portend any good for the economy.
As much as we do not put all the blame on the authorities for this state of affairs, there seems, however, to be good reasons for people patronising these black markets.
Virtually all the respondents to the topic for our forum on page 36 indicate that the black market is serving a useful purpose when it comes to meeting their forex demands. They do not have to worry their heads by going to the bank or forex, which turn out to be dry and unhelpful.
The basic problem with the foreign exchange market has to do with supply deficit in the sense that there are not enough foreign currencies to meet the demand of those who really need them. This therefore allows those in need of foreign currencies to look to the black markets because they offer high rates, and are less bureaucratic.
The banks and forex bureaux should up their acts and make the black market unattractive by playing their expected roles effectively to save the nation from being held to ransom by these black marketers who presently seem to be filling a huge void created by the Bank of Ghana.
Another issue is the need to de-emphasise the dollarisation of the economy. For instance it does not make economic sense for importers to chase dollars only to change them into other currencies at the point of procuring the items.
Let’s act fast to stabilise the exchange rate regime for the desired outcome.