26.1 C
Saturday, May 25, 2024
BusinessCedi is rapidly depreciating due to govt's reckless fiscal decisions - Ato...


Cedi is rapidly depreciating due to govt’s reckless fiscal decisions – Ato Forson


The Minority Leader, Dr. Cassiel Ato Forson, has contended that the government’s financial decisions are significantly exacerbating the rapid depreciation of the Cedi.

Both the business community and trade unions have voiced myriad concerns about the steep decline of the Cedi against the US dollar, with recent rates hovering around GH¢15 to $1 as of Thursday, May 16.

- Advertisement -

During a press conference on Wednesday, May 15, the Minority Caucus revealed that the government disbursed an excess of GH¢7 billion to contractors outside the 2024 budget. They allege that this amount was utilized to purchase dollars, further weakening the Cedi.

In conversation with Bernard Avle on the Citi Breakfast Show aired on Citi FM, the Minority Leader emphasized that the government’s actions have led to a Cedi depreciation of over 70% since July 2022.

- Advertisement -

“Since 2022, the Cedi has depreciated more than 70% and the current problem is primarily a result of how the government is spending.

“In the last month, the government has borrowed over GH¢7 billion from the T-bill market and used this money to pay contractors who have also purchased dollars hoping that the Cedi will depreciate and so even if you go to the market to buy dollars, you struggle to get it and this is because people lack confidence in the economy.”

- Advertisement -

“The Ministry of Finance is approving these payments, and the contractors are using it to buy dollars and it is easy to track this. Unless you are not watching the fiscal space, you will see that these monies are used to buy dollars.

“My concern is that it is coming at a time when we have defaulted on our external debts, and since we have defaulted on it, one would have thought we should be seeing a lot of forex, but that is not the case,” Dr. Forson added.

Latest stories

I date intelligence and funny men – Tems

Grammy-winning Nigerian singer Temilade Openiyi has shared that she...

Ghanaian jailed 48 months in US for involvement in $3.8m romance scam

A Ghanaian national, Emmanuel Quamey, has been sentenced to...

Rooney given Plymouth Argyle head coach role

Plymouth Argyle, a Championship side, has appointed former England...

Ghana witnessed 2.9% GDP growth in 2023 – Amin Adam

During the Ministry of Finance's monthly briefing on Friday,...

Related stories

Ghana witnessed 2.9% GDP growth in 2023 – Amin Adam

During the Ministry of Finance's monthly briefing on Friday,...

Govt and Tullow Oil approve US$90million emissions reduction deal

Tullow Oil plc has unveiled a financial commitment of...

Cedi has experienced a 14.2% depreciation in 2024 – Amin Adam

Finance Minister, Dr. Mohammed Amin Adam has indicated that...

Cedi will be stable in medium-term after completion of DDEP – Finance minister

Finance Minister Dr. Mohammed Amin Adam has noted that...

Ghana’s Energy Transition Framework aims for net-zero emissions by 2070 – Deputy Energy Minister

Deputy Energy Minister, Collins Adomako-Mensah has unveiled an ambitious...

Govt commits GHS2.3bn to NIB restructuring and recapitalization

The government has approved GH¢2.3 billion for the restructuring...

Govt set to introduce SME training initiatives – Finance minister

The government has announced plans to enhance support for...


Please enter your comment!
Please enter your name here