Professor of Finance and Economics at the University of Ghana, Charles Ackah has taken a swipe at the government for failing to address structural challenges causing the Ghana cedi to depreciate.

The Minister of Finance, Dr. Mohammed Amin Adam recently at a press briefing explained that the depreciation of the cedi is partly due to huge payments made to contractors and Independent Power Producers (IPPs).

Even though Prof. Ackah admitted that the recent free fall of the cedi could be partly attributed to the payment of arrears to contractors and the Independent Power Producers, he argued that government has no excuse but to remedy the situation.

He spoke to Joy Business at a launch of a report on digital technologies and agri-based economies in Central and West Africa organized by the Institute of Statistical, Social and Economic Research (ISSER).

He urged government to be deliberate in fixing the supply side factors affecting the cedi.

"I think the problem is more than paying contractors and the IPPs. I think we have a structural problem which is we don't have enough forex in the country because if we do, and even you pay contractors and they exchange it, we will still have enough to release into the market. I just don't think there is sufficient dollars in the market”, he said.

Prof. Ackah advised government to be candid with the forex situation and seek the input of stakeholders to address the issue.

He added that there is an urgent need to find the supply side of the dollar challenges to assure the market of stable supply.

 Giving some recommendations he stated that there must be a deliberate strategy to grow the industry sector to boost Ghana’s export in order to bring in more foreign earnings.

"The supply side has to be fixed. It will help in export.  We don't have enough Ghanaian industries, which is why we are struggling”, he said.

In addition, Prof. Ackah called for a reassessment of remittances in the country.

He proposed a system that will help improve remittance through further engagement with key stakeholders.

"If we don't have industries producing at scale then we can look at remittances to improve on forex. The question is how is remittances doing? I think we need to look at that”, he suggested.

Minister for Finance, Dr. Mohammed Amin Adam, has reassured Ghanaians that there is sufficient foreign exchange in the economy to meet the country's needs, cautioning the public against panic buying of forex.