Gov’t Should Scrap Cedi for U.S Dollar _Yale University Lecturer suggested

… Arguing that Businesses can still survive economic hardships with right strategies

Dr. Vikram Mansharamani

A global equity investor,and an Economics Lecturer at Yale University, Dr Vikram Mansharamani, says the rate at which Ghana’s local currency, Cedi, has devalued since the country’s independence should inform authorities to scrap its usage as legal tender.

Dr Mansharamani noted that the Cedi has depreciated 99.99 per cent since Ghana’s independence in 1957 and that is the cause of the country’s economic woes.He made these suggestions in an interview with TV3’s Kweku Temeng on Friday, August 15 in Accra.

The Cedi was introduced as legal tender under the presidency of Osagyefo Dr Kwame Nkrumah in 1965 and has been under the regulation of the Bank of Ghana.

“The Ghana Cedi has emotional attachment,” Dr Mansharamani admitted but stated that if the regulators of the currency have not the capabilities, they should outsource it.

He cited the performance of the CFA by Francophone West African countries as evidence that Ghana can adopt another country’s currency to run its economy.

He said a country like Hong Kong is doing well currently because it abandoned its local currency for the US Dollar, suggesting that Ghana can adopt the US Dollar as its currency.

New opportunities

Dr. Vikram Mansharamani, said although the economic challenges that Ghanaian businesses are currently facing may be daunting, with the right strategy, companies can turn things around.

“If business leaders will equip themselves with the relevant tools and constantly update their strategies to meet the needs of ever-demanding trends, their organizations will remain profitable and globally sustainable.”

He stated that “disruptions and uncertainty are often a source of new opportunities. Volatility, currency devaluation, falling confidence and other characteristics are perfect for taking new opportunities. It will require a planning process that models scenarios and acts accordingly.”He made these remarks during a brief interaction with the press on his arrival in Accra last Tuesday.

Achievements & mission

He has taught the extremely popular seminar “Financial Booms & Busts” to Yale and is also the author of BOOMBUSTOLOGY: Spotting Financial Bubbles Before They Burst.

He is a regular commentator in the financial and business media, having contributed to Bloomberg, Market Watch, CNBC, Forbes, Fortune, The New York Times, The Wall Street Journal, The Atlantic, Yale Global, The South China Morning Post, The Korea Times, The Khaleej Times, Harvard Business Review, and The Daily Beast, among others.

Dr. Mansaharamini joined his co-speakers; Prof. Ian Shapiro also of Yale University, Dr. Mensa Otabil, Prof. Robert Hinson, Mr. Charles Mensah, Mr. Sangu Delle and hosts Rev. Albert & Comfort Ocran during a one-day conference held at Labadi Beach Hotel last Thursday 14th August.