Politics

Oppong Nkrumah: Government to inject $2bn into economy to curb cedi depreciation

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

The Information Minister stated in an interview with Citi FM located in Accra that 750 million dollars of the total is anticipated from the Afremix Bank and the remaining $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.

Relatedly, the Ghana Union Traders Association (GUTA) has declared that its members will close their stores on Monday, August 29, 2022, in protest of the free collapse of the Cedi and the difficulty of the economy.

The President of GUTA, Dr. Joseph Obeng, said during a press conference in Accra that their businesses are being negatively impacted by the quick and ongoing depreciation of the Cedi, as well as the ongoing increase in interest rates and high inflation rate.

He urged the administration to immediately realize the extent to which the country’s enterprises are imploding as a result of the exchange rate.

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