A GOVERNMENT WITHOUT A FOREIGN EXCHANGE POLICY WHICH IS WHICH, FIXED EXCHANGE RATE OR FLEXIBLE EXCHANGE RATE POLICY?

The Government claims that it is committed to a flexible exchange Rate
policy where the market is left to determine the exchange rate of the
dalasi in relation to other foreign currency. Up to 4th May 2015 the
exchange rate was determined by the market. Hence, the official interbank rate for the dollar was D51.07.
The Office of the President gave an executive  directive  on 4th May
that the exchange rate of the dollar should be reduced to D50 for the
dollar.
Could you imagine the losses to be incurred by those who have already
spent dalasis to purchase dollars for sale at the new rate?
Suffice it to say that the Central Bank rate is not that of the
speculators. It reflects the state of the currency market.
Lack of foreign exchange rate stability would lead to hoarding of
foreign exchange whenever there is executive directive to reduce the
rate. This may lead to the scarcity of foreign exchange and reduction
in capacity to pay for imports. This is a recipe for economic down
turn. The real way to protect the value of the dalasi is to increase
exports of goods and services.