Business

Ghana is given a $750 million loan from Afriexim Bank.

In the 2022 Budget, the facility is anticipated to finance capital- and growth-related expenses. It will also significantly strengthen the local currency by assisting in stabilizing the cedi, which has been under significant devaluation pressure lately.

The additional foreign exchange, in the opinion of experts, should further increase confidence in the local currency.

The loan’s proceeds would mostly be used to fund initiatives in the transportation, energy, rail, and healthcare industries. These initiatives are those that are listed in the government’s economic strategy and budget statement for 2022.

Recently, Kojo Oppong Nkrumah, the minister of information, made a hint that the government planned to pump $2 billion into the economy.

The action is anticipated to assist in halting the Ghana Cedi’s wild decline against the US dollar and other major currencies.

The Information Minister stated in an interview with Citi FM in Accra that 750 million dollars of the total are anticipated from Afremix Bank and the balance $1.3 billion from the syndicated loan for cocoa.

The Bank of Ghana took a number of immediate action steps to address the situation, and as a result, “all the paperwork has been completed, and the $750 million that we were expecting should be entering our accounts today or tomorrow.”

The minister remarked, “If I were you and I held onto dollars, I would be selling them by this point because there is a lot more dollar coming in from the $750 million and also from the Cocoa Syndicated Loan of roughly $1.3 billion.”

Kojo Oppong Nkrumah added that the administration is certain that the inflow of cash will hasten the Cedi’s stabilization.

According to Bloomberg, the cedi has declined by at least 35 percent in 2022, ranking second worst globally among 150 economies monitored only to the rupee of Sri Lanka.

Related Articles

Leave a Reply

Check Also
Close
Back to top button
%d bloggers like this:

Adblock Detected

Please consider supporting us by disabling your ad blocker