The US$750 million that we were anticipating should enter our account by Tuesday or Wednesday, according to Mr Oppong Nkrumah, who claimed that the President was informed of this information this morning.
According to Kojo Oppong Nkrumah, the Minister of Information, a large sum of dollars is expected to hit the country’s account to support the indigenous currency, the Cedi.
The US$750 million Afreximbank loan and the subsequent US$1.3 billion syndicated loan from the cocoa industry, totalling US$2 billion, is expected to immediately affect the Ghanaian economy, according to the Ofoase Ayirebi lawmaker.
He explained that “external reasons, like the repatriation of cash, have caused a cedi that has devalued very swiftly. The Bank of Ghana launched a range of measures to deal with the depreciation of the cedi.”
“So, if I were you and I was holding onto dollars, I will be selling by now because there is a lot of dollar coming in from the US$750 million and then from the cocoa US$1.3 billion syndicated loan that comes together like US$2 billion hit the Ghanaian economy.
“We need to cut down on our import bills significantly. We are importing rice, chicken, fruit juices, there need to be clarity on what we need to do to reduce the importation, and those are some of the things that are being done,” he told Accra-based Asaase Radio on Tuesday.
Regarding, the Cedi performance, the Bank of Ghana (BoG) in a statement called for calm as it has introduced measures to resolve the fall.
“Therefore, if I were you and I was holding onto dollars, I would have sold them by now because there are a lot of dollars coming in from the US$750 million and then from the cocoa US$1.3 billion syndicated loan that combined amount to US$2 billion impacting the Ghanaian economy.
“We must considerably reduce our import expenses. We import rice, poultry, and fruit juices; we need to be clear about what we must do to cut down on imports, and those are some of the things we are doing, he said on Asaase Radio in Accra on Tuesday.
In a statement regarding the Cedi’s performance, the Bank of Ghana (BoG) urged restraint because it has put measures in place to stop the collapse.
The BoG has determined five major causes of the local currency’s problems.
The US dollar’s strength, investor response to a credit rating downgrade, non-rollover of maturing bonds, the steep increase in crude oil prices and their effect on the oil bill, and the loss of external financing are these.
According to the BoG, measures have been put in place to address these issues, including the “Gold Purchase Program to increase foreign exchange reserves; Special Foreign Exchange Auction for the Bulk Distribution Companies (BDCs) to help with the importation of petroleum products, and Bank of Ghana is entering into a cooperation agreement with the mining companies to give BOG the opportunity to buy gold as it becomes available.
“To help fulfil the demand for external payments, the Bank of Ghana is supplying the banking sector with foreign currency liquidity. Once paid out, the recently approved USD 750,000,000 Afriexim credit facility by Parliament will improve the nation’s foreign exchange situation and support trust building.”
“The Cocoa Loan is anticipated in the year’s last quarter. Additionally, this facility will contribute to the provision of more foreign cash to combat the cedi’s depreciation. When the IMF program is finished, we anticipate that it will significantly contribute to regaining investor confidence in the economy and stimulating portfolio flows.”
Source – 3news.com
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