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(Discuss various Ghanaian subject areas)
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miky
Super Eagle
Joined: 07 Jun 2004
Posts: 1021
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 Posted: Fri Dec 31, 2004 8:09 am Post subject: THE CEDIS IS THE MOST WORTHLESS CURRENCY IN WEST AFRICA |
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| FOR FACT THAT THE CEDI IS ALMOST 10000 TO A DOLLAR IS APPAULING I JUST CANT IMAGINE THE GREAT NAIRA LIKE THAT EVENT TOGO MONEY IS BETTER.A PITY THAT A COUNTRY WHO THINK THAT THEY DOMINATE WEST AFRICA HAS ONE OF THE MOST USELESS IN THE WORLD. |
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esosa
Kindergarten
Joined: 08 Oct 2002
Posts: 31
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| Posted: Fri Dec 31, 2004 3:12 pm Post subject: esosa |
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Miky,
Please calm down. What have these ghanaians done to you. Please take it easy and give them some respect especially on their forum. BTW, Ghana is still the most politically and economically stable country in West Africa. If they had more revenue base, i believe they would do really well. I sincerely believe that they (Ghana) have performed quite well with the little they have. |
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miky
Super Eagle
Joined: 07 Jun 2004
Posts: 1021
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| Posted: Fri Dec 31, 2004 6:19 pm Post subject: Re: esosa |
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| esosa wrote: |
Miky,
Please calm down. What have these ghanaians done to you. Please take it easy and give them some respect especially on their forum. BTW, Ghana is still the most politically and economically stable country in West Africa. If they had more revenue base, i believe they would do really well. I sincerely believe that they (Ghana) have performed quite well with the little they have. |
infact this guys have crossed the border and am not going to let anything i see cross my path.imagine the stupidity am sure if nigeria was in the same postion no one like you would talk so convincingly thats why nigeria is the most happiest. |
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Enyonam
Guest
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| Posted: Wed Jan 05, 2005 1:58 pm Post subject: Milky what? |
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| At least, we do not have political assassinations in Ghana. |
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FL
JSS
Joined: 03 Jan 2003
Posts: 101
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| Posted: Wed Jan 05, 2005 9:02 pm Post subject: Alas, not so. |
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Unfortunately, I believe that that last claim cannot be said accurately of Ghana's Far North. The King of Dagbon's murder was evidently a political assassination, at least partly.
The cure for the inflated (debased) Ghanaian currency is to go over to a gram of gold as the currency (after giving the new West African "eco" currency a fair chance). I described this in more detail in another thread yesterday. |
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Nemesis
Green Eagle
Joined: 15 Dec 2004
Posts: 476
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| Posted: Fri Jan 07, 2005 6:49 pm Post subject: |
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| Miky please I join to beg you to cease fire. Let's refrain from posting inflammatory topics. Please |
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Guest
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| Posted: Fri Jan 07, 2005 7:36 pm Post subject: |
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Seriously my friend (Miky),
Take it easy. Don't be so sensitive. |
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Guest
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| Posted: Fri Jan 07, 2005 7:55 pm Post subject: |
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Why are you begging this #%!&. He started this himself. Who is he. Are you afraid of this BASTARD, he can't do FOKKO. Please give me way let me fart on him.  |
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Derelikt
JSS
Joined: 10 Jan 2005
Posts: 53
Location: Boston
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| Posted: Mon Jan 10, 2005 9:45 am Post subject: Re: THE CEDIS IS THE MOST WORTHLESS CURRENCY IN WEST AFRICA |
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| miky wrote: |
| FOR FACT THAT THE CEDI IS ALMOST 10000 TO A DOLLAR IS APPAULING I JUST CANT IMAGINE THE GREAT NAIRA LIKE THAT EVENT TOGO MONEY IS BETTER.A PITY THAT A COUNTRY WHO THINK THAT THEY DOMINATE WEST AFRICA HAS ONE OF THE MOST USELESS IN THE WORLD. |
Hey Milky,
I really hate to point this out to you but every post you have made bashing Ghana is pretty ridiculous when one considers them in depth. Really, I have nothing against you, but Milky it would help if you thought a little bit more before making a post and perhaps tried to gather some information about a possible Ghana-bashing point before posting to avoid making a #%!& out of yourself. Really, maybe then, we all could have a sensible argument and you would really be helpful in pointing out what is wrong with our country so we can do something about it. Now, I don't expect you to get what I am going to say about the "worthlessness" of the cedi, but as an economics college student I simply cannot pass the ignorance. The Devaluing of a currency does not happen on it's own, it is not some sort of a natural indicator of the economic conditions of a state.
Take this as an example, Turkey's exchange rate is 1,390,000.40 Liras to a dollar, (much greater than the cedi wouldn't you say?) while the exchange rate for your beloved Nigeria is 132.2961 Nairas to 1 dollar. However, the GDP , which is the real indicator of welfare, for turkey is about 3 times that of Nigeria. Take in account the fact that Nigeria's population is much greater, and the difference becomes even wider. If you doubt me go here--
http://www.exchangerate.com/200plus_calculator.html (for exchange
rates) and here --http://www.indexmundi.com/ (for GDP values)
and see for yourself. Really, low exchange rates are beneficial. The central bank of Ghana devalues the currency to encourage export and discourage import, to keep local goods cheaper than foreign goods--which is very good for the economy. What matters is predictability, not value--Ghanaian people and foreigners alike know that the currency will depreciate over time and so they take the necessary precautions...
Now, Milky, again, next time make sure you know something in the subject area before you post. If you don't, there are always forums (Susu in this case) where you could ask... Have a nice day (if you have read this far, I am impressed because it is much more than I expected from you...)
--Derelikt |
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Nemesis
Green Eagle
Joined: 15 Dec 2004
Posts: 476
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| Posted: Mon Jan 10, 2005 5:54 pm Post subject: |
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I like your post Derelikt, but sorry to burst your bubble. Devaluing of currency works better in a developed economy and not a dependent economy like Ghana. It works in a country which depends on export and not one which imports virtually everything. Devaluation of currency by dependent economies like Ghana only leeds to stifling of economic activies in those states. It is the masses who bear the brunt of this misguided policy.
No.1, all imported goods will be out of reach of average folks. This is because the cost of foriegn exchange will go up which will also affect goods and services.
Secondly, importation of raw materials needed for the weak industrial base becomes expensive which leeds to companies and factories closing down and relieving thousands of job.
Thirdly, your argument lack credibility since Ghana export mainly agricultural produce apart from gold. Ghana in turn import this same agricultural produce as finished goods in a much higher cost. What's the sense of that.
It's world bank and bretton woods establishments that try to force third world countries to devalue their currency so that they will remain in perpetual bondage. This was the reason Nigeria pulled out from world cup assisted reform sometime back( although they later went back after some reconciliation). Nigeria has an experience in this since their present finanace minister was former vice president of world bank. |
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miky
Super Eagle
Joined: 07 Jun 2004
Posts: 1021
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| Posted: Tue Jan 11, 2005 4:14 am Post subject: Re: THE CEDIS IS THE MOST WORTHLESS CURRENCY IN WEST AFRICA |
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| Derelikt wrote: |
| miky wrote: |
| FOR FACT THAT THE CEDI IS ALMOST 10000 TO A DOLLAR IS APPAULING I JUST CANT IMAGINE THE GREAT NAIRA LIKE THAT EVENT TOGO MONEY IS BETTER.A PITY THAT A COUNTRY WHO THINK THAT THEY DOMINATE WEST AFRICA HAS ONE OF THE MOST USELESS IN THE WORLD. |
Hey Milky,
I really hate to point this out to you but every post you have made bashing Ghana is pretty ridiculous when one considers them in depth. Really, I have nothing against you, but Milky it would help if you thought a little bit more before making a post and perhaps tried to gather some information about a possible Ghana-bashing point before posting to avoid making a #%!& out of yourself. Really, maybe then, we all could have a sensible argument and you would really be helpful in pointing out what is wrong with our country so we can do something about it. Now, I don't expect you to get what I am going to say about the "worthlessness" of the cedi, but as an economics college student I simply cannot pass the ignorance. The Devaluing of a currency does not happen on it's own, it is not some sort of a natural indicator of the economic conditions of a state.
Take this as an example, Turkey's exchange rate is 1,390,000.40 Liras to a dollar, (much greater than the cedi wouldn't you say?) while the exchange rate for your beloved Nigeria is 132.2961 Nairas to 1 dollar. However, the GDP , which is the real indicator of welfare, for turkey is about 3 times that of Nigeria. Take in account the fact that Nigeria's population is much greater, and the difference becomes even wider. If you doubt me go here--
http://www.exchangerate.com/200plus_calculator.html (for exchange
rates) and here --http://www.indexmundi.com/ (for GDP values)
and see for yourself. Really, low exchange rates are beneficial. The central bank of Ghana devalues the currency to encourage export and discourage import, to keep local goods cheaper than foreign goods--which is very good for the economy. What matters is predictability, not value--Ghanaian people and foreigners alike know that the currency will depreciate over time and so they take the necessary precautions...
Now, Milky, again, next time make sure you know something in the subject area before you post. If you don't, there are always forums (Susu in this case) where you could ask... Have a nice day (if you have read this far, I am impressed because it is much more than I expected from you...)
--Derelikt |
do you think gana is japan or south africa or nigeria that they produce hardly in my life have i ever seen a gana product in nigeria or usa.u guys buy our products our films too like ur patronizing whores.anyways i d.ont feel like argueing.look at the gana men crying and suffering they cant even produce enough for thier country and u say they are doing it for thier products.even some on this very forum have lamented how the cedis is fast declining. |
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Derelikt
JSS
Joined: 10 Jan 2005
Posts: 53
Location: Boston
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| Posted: Tue Jan 11, 2005 8:44 am Post subject: |
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| Nemesis wrote: |
I like your post Derelikt, but sorry to burst your bubble. Devaluing of currency works better in a developed economy and not a dependent economy like Ghana. It works in a country which depends on export and not one which imports virtually everything. Devaluation of currency by dependent economies like Ghana only leeds to stifling of economic activies in those states. It is the masses who bear the brunt of this misguided policy.
No.1, all imported goods will be out of reach of average folks. This is because the cost of foriegn exchange will go up which will also affect goods and services.
Secondly, importation of raw materials needed for the weak industrial base becomes expensive which leeds to companies and factories closing down and relieving thousands of job.
Thirdly, your argument lack credibility since Ghana export mainly agricultural produce apart from gold. Ghana in turn import this same agricultural produce as finished goods in a much higher cost. What's the sense of that.
It's world bank and bretton woods establishments that try to force third world countries to devalue their currency so that they will remain in perpetual bondage. This was the reason Nigeria pulled out from world cup assisted reform sometime back( although they later went back after some reconciliation). Nigeria has an experience in this since their present finanace minister was former vice president of world bank. |
OK, Nemesis, thanks for your post-- Everyone is allowed to have opinions, and my opinion is :
¤ Your views are very outdated ¤
First of all let me say that I am sorry I made kind of a mess in my first post, I did not make myself at all clear. What I wanted to say was that the Ghanaian central bank could devalue the currency (not that they are doing so now) anytime they chose fit, and so if their only concern was the value of the cedi, that could be increased overnight. Of course, only people like Milky as central bank governors would do that, because that would wreck the credibility of the financial market and negatively affect investment. Yes, it is true that when money depreciates, foreign goods become more expensive-- that is why I argued that this leads to greater exports AND also gives the country an incentive to become self-sufficient. Greater self-sufficiency drive and a better balance of payments condition, in my view ofcourse, are a good thing. Yes, Imported goods will be out of reach of average folk, that will encourage local businesses, competition LOCALLY, and eventually a quality production of goods that could rival foreign goods produced LOCALLY being very affordable. Ofcourse, the transition would be painful, but it would still be better than sitting on our asses and waiting for foreign aid to feed us our entire lives.
Now that I am done straightening my previous argument, consider this-- Nemesis, the face of Economics has changed and all that you said, REALLY, does not have to hold true. If you have heard of the theory of Rational Expectations (George Lucas rings a bell?) the exchange rate really would not matter locally.(If you haven't , I suggest you take a look, there are lots of sites where you could get a description- just google it). As I said in my previous post, Predictability of the exchange rate not its value is what matters --Consider this-- Since the exchange rate is rising, prices of foreign goods (including your beloved raw materials) are rising too, right? The central bank is pumping more money into the economy (which does not cause inflation I must say,because it was predicted, and the interest rate rises to accomodate the increase in money). Wages and Salaries rise at roughly the same rate (rate extended from the rise in exchange rate). Money becomes worthless over time but it hurts no one because everyone's purchasing power remains the same (roughly speaking). The point is, money is just paper, what matters is its Purchasing Power. Correct expectations will lead to no change in the local economy. That is why countries with worthless currency (eg Turkey) can still be richer (much reacher) than countries like Nigeria. Their money is worthless but every citizen has much more of it and that more than compensates for the worthlessness.
If you don't agree, I will be more than happy to continue the argument. And, Oh, I don't think milky has read this far, but if he has... Milky, you are a jackass and should be banned from this site. You have no arguments, just a senseless sense of patriotism - - so instead of making any sense you end up pissing everyone off. Quit this BS and get a life A.S.S.H.O.L.E!
--Derelikt ALWAYS ; I WILL take you on |
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