By Cornelius Deveaux
I see our brothers in governance have endeavor to lighten the hearts of an already depressed people with impish glee in claiming that with the new currency the price of fuel will be Le 15.00 (New Leone) and not Le 15,000.00 (Old Leone).
They claim the redenomination will create a ’psychological effect’ that the economy is getting better and that the people will be obliged to act as if things are getting better.
This level of deception is unbelievable. The so called psychological effects is cosmetic. To say the economy is getting better simply because of redenomination is a faulty premise.
The reasons being:
1. Buying a litre of fuel at Le 15.00 (New Leone) and not Le 15,000.00 (Old Leone) is as a result of redenomination and not price reduction.
2. The redenomination has not occasion an increase in wages and income of the ordinary people. So wages and income will still be depressingly low. Thus the redenomination will be of no consequence in balancing the equation between earnings and expenditure.
3. And because we are both an import and donor reliant economy, inflation will continue to rise and the corresponding effects on the depreciation of the Leone will continue to lurk around.
4. Consequently prices of essential commodities including fuel will continue to rise irrespective of the redenomination while wages and income remain the same.
So, the SLPP should stop the deception and come to terms with the fact that they have managed the economy with unimaginable ineptitude.
Can’t wait for June 24, 2023
©Baba Ogun
