Economist, Dr. Theo Acheampong is of the view that exchange rate volatilities could cause government to miss its end of year inflation target of 15 percent.
Analyzing some of the revised macro-targets in the Mid-Year Budget Review, he expressed optimism that the country may be able to achieve the Overall Real GDP Growth rate which has been revised upwards from 2.8 percent to 3.1 percent, but could miss the inflation target.
He pointed out that duties and taxes on goods imported into the country are normally index in dollars, a situation that unnecessarily increase prices of goods.
“Most of the charges on the ICUMS platform are charged in dollars. This means that when the cedi depreciates, importers will pay more at the ports”.
This, Dr. Acheampong argued the situation will always impact on prices of goods, leading to inflation.
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