According to the Finance Minister, Ken Ofori-Atta, the government’s efforts to control the continuing cedi depreciation against key exchange currencies will soon yield some results.
At the Minister’s Press Briefing series held in Accra on September 28, the Minister mentioned systems including a Special Foreign exchange auction for bulk distribution companies and a Gold Purchase Programme which the Bank of Ghana has put in place to combat the cedi depreciation.
He further explained that the Ministry had successfully secured a $750 Million Afreximbank loan facility received in August 2022 to shore up reserves, enhance exchange rate stability and cover some of the funding needs.
Mr. Ofori-Atta also stated that the Traditional Cocoa Syndication Loan which will yield results in the final quarter of 2022 will enhance the cocoa industry, aid in the development of Forex reserves and act as a potent cedi buffer.
The condition of the national currency has been a big issue of concern for Ghanaians as it has depreciated rapidly and significantly since the beginning of the year. The cedi, now selling at about GHS 10 to the US dollar has imposed a myriad of economic hardships on the citizenry as it has affected the currency’s performance which has also led to a high cost of living. Investors have also lost confidence in the Ghanaian market due to high government debts. As a result, the government has been deprived of access to the international capital market.
The current economic crisis seems to be unsurmountable by the government and thus, it has finally resorted to the International Monetary Fund (IMF) for support. The country, therefore, anticipates the IMF support programme which will be available next year.
Will the IMF programme succeed in bringing an end to our national economic woes or should the government explore other means of rescuing the nation from our current degrading state?
Priscilla Fumadorh
Priscilla is an entrepreneur and a creative communicator who loves to communicate through writing. She is passionate about national economic issues and does not miss a chance to offer her opinions on them for the good of the country.
As long as the other ways do not include “milking the citizenry more”, they are free to explore. I think a readjustment of some of their allowances and benefits will help. It almost looks like the government borrows to pay itself.
The last sentence though…I agree so much with you on that, Sylvester.
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