The New Patriotic Party (NPP) running-mate, Dr. Mahamudu Bawumia, says the poor management of the economy is the reason why the cedi is depreciating so fast against the major currencies.
According to him, people holding dollar accounts has been a normal practice for a long time, and thus, should not be blamed for the depreciation of the cedi and the failing economy.
At a congress organised by the Northern Students Union in Bolgatanga in the Upper East Region, Dr. Bawumia asked: "Why do people prefer to hold dollars rather than cedis? This has really come because of a long experience that people have had of macro-economic instability, that people would hold their cedi and over time the value of the cedi get eroded by inflation or by exchange rate depreciation."
He told his audience: "This is what has resulted in many people forming the habit of holding foreign currency. Dollarisation, therefore, is a response to the macro-economic instability that has happened over the years.
"The way you deal with it is not by having ideas about abolishing dollar accounts in the country; you deal with it by addressing the fundamental issue that deals with macro-economic stability," Dr. Bawumia said.
The running-mate of Nana Addo Dankwa Akufo-Addo caused a stir last April, when he told Ghanaians that single digit inflation was not sustainable in an economy of rising cost of goods and services.
He also questioned the direction of the economy, which, in his opinion, was being poorly handled by the indecisive administration of President John Evans Atta Mills.