Establishment of a new currency is to strengthen the prospects
for an economy. Ghana’s devaluing is autonomous and independent because it doesn’t
rely on solvency from any other country source. The Euro carries the same
premise which is to strengthen the economies it circulates in and monetizes.
The Euro has a communal effect that carries a global ripple
due to its 17 country membership. Each country has different industry strengths
and trading partner equivalents and each trading partner must continually
evaluate the situation. Remaining cautious of the outcome due to any sudden
movement s in currency valuation could easily cause developing agreements to
become an economic loss for any investing country.
The economic principle of a weak currency means increased
buying power reigns true however, not in every situation. Increased buying power doesn’t mean increase
in business investment at every opportunity. Countries with weak currencies
must have something of incredible value to offer investors, and in todays’ age the
investment of choice is commodities. Whether its oil, gold, coffee, or natural gas
it must be a product that will prove useful or in scarcity in another economy.
While this makes sense it can be hard to accomplish and also
is often not an economic goal of the country receiving investment. Being able
to attract cash strapped investors into a country where they previously haven’t
invested is a gamble and considered extremely risky. While the country
receiving investment is glad to have the interest and investment it would many
times prefer an investment that will attract jobs to citizens of that country
instead of foreign investors bringing their own workers.
The current value of the Ghanaian cedi is definitely an
issue, however, it pales in comparison to the Euro. The Ghanaian cedi still has
a future while the future of the Euro remains a question. For all investors who
wonder about investments in Ghana please visit this website: http://www.gipcghana.com/
No comments:
Post a Comment