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IEA proffers urgent debt restructuring and tighter forex regulations to stabilise cedi


The Institute of Economic Affairs (IEA), has blamed the economic managers for failing to address the cedi problem head on. 

According to the IEA, policymakers have consistently failed to take the requisite measures to buttress the Cedi.

In a statement, it said they wait till the situation gets out of hand before they adopt unsustainable measures. For instance, the IEA said presently government seems to be waiting for funding from the IMF and other developing partners before restoring some stability to the cedi.

This approach, it said, is not sustainable.

The IEA spelt out some practical measures it believes can be taken to stabilise the cedi on a lasting basis.

These include government urgently engaging both the IMF and the external creditors to reach an early agreement on the external debt restructuring exercise. 

The Central Bank must step up the enforcement of Forex market regulations as well as use its Economic Intelligence Unit, working together with the security agencies, to monitor acts of illegal Forex transfers through banks, forex bureaux, and other channels, as well as money laundering, to reduce the demand for Forex.

Checking these illegal Forex dealings, it stressed, would help stem the tide of Forex demand.

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