- Dr Mohammed Amin Adam, the Minister of Finance, urges Ghanaians to stop panic buying dollars
- He said panic buying is further exacerbating other external and internal pressures on the cedi resulting in its free fall
- He said the government has introduced many measures to boost the CEDI but the results will not materialize until the panic buying stops
The Minister of Finance Dr. Mohammed Amin Adam has warned Ghanaians against panic buying dollars from the foreign exchange market.
He attributed the free fall of the cedi to the dollar rush.
Source: Getty Images
He said the panic buying of dollars and other foreign currencies as a store of value is eroding the gains made by the cedi after the injection of much needed foreign exchange by the International Monetary Fund at the start of the debt rescue programme.
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He said the situation further exacerbates pressure on the local currency from the strengthening dollar as well as other factors.
He said that while the government is implementing strong measures to ensure continued stability of the currency, the currency rush must stop allowing these interventions to work.
Dr. Amin Adam has assured Ghanaians that about $2.32 billion will flow into the country from sources such as the IMF, the World Bank, the government’s Gold for Oil policy, the Bank of Ghana’s gold reserve scheme, among others; to support CEDI.
“We don’t need to rush and buy forex,” the finance minister said.
Dr Amin Adam was optimistic that the CEDI would remain stable against the dollar in the medium term as the government completes its debt restructuring programme, improves its fiscal consolidation and improves the country’s reserves.
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He spoke his mind the ministry works closely together with the central bank to implement measures to counter the annual depreciation of the Cedi.
Some of the measures include rapid fiscal consolidation, intensification of Gold-for-Oil and Gold Reserves programs and strategic exchange rate interventions by the central bank.
Ghana to secure third tranche of IMF bailout money
YEN.com.gh reported that Ghana is on track to secure board approval of the third $360 million tranche of its $3 billion IMF support.
Better than expected results are reported to be presented by the government’s support program.
Ghana has received $1.2 billion financing from the IMF so far and approaching the approval process for the next disbursement.
Julie Kozak, the IMF’s Director of Communications, said Ghana is gaining more confidence and support from the IMF.
Ghana is expected to receive approval for the third tranche of $360 million when the IMF’s Executive Board meets in June.
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Ghana is set to receive approval for the third tranche of the $360 million IMF deal
The government is not expected to implement additional adjustments from the IMF.
The government has expressed optimism that ongoing discussions between official creditors will facilitate the completion of talks, allowing the release of the third tranche of funds.
Corrected by Berlinda Entsie, reporter and copy editor at YEN.com.gh
Source: YEN.com.gh