The Minister of Finance, Ken Ofori-Atta has disclosed that the end is near for the current turbulent foreign exchange market for Ghana.
He said the continuous depreciation of the Ghanaian cedi will halt if the $3 billion credit facility from the International Monetary Fund (IMF) is finalized.
Addressing Journalists at a press conference on Tuesday, Mr Ofori-Atta said the agreement when finally approved by the IMF Board will help restore macroeconomic stability, tackle inflation, and strengthen the local currency.
“Truly, the eventual conclusion of the program will assist us in our efforts to restore stability, tackle inflation, and strengthen our currency.”
Ghana’s inflation rate climbed more than expected in October, raising pressure on the central bank to continue increasing borrowing costs that are already at a more than five-year high.
Annual inflation quickened to 40.4% compared with 37.2% a month prior, Government Statistician Samuel Kobina Annim said.
Mr Ofori-Atta in his address also called on Ghanaians and relevant stakeholders to come on board and support the programme to ensure its success.
“That is why the various ingredients of the program should be supported by all Ghanaians and all stakeholders.”
The IMF, earlier today, announced that it has reached a staff level agreement with the government of Ghana on the $3 billion bailout.
In a statement on its website, the IMF said: “The authorities’ strong reform program aims at restoring macroeconomic stability and debt sustainability while protecting the vulnerable, preserving financial stability, and laying the foundation for strong and inclusive recovery. To support the objective of restoring public debt sustainability, the authorities have launched a comprehensive debt operation.
“In addition to a frontloaded fiscal consolidation and measures to reduce inflation and rebuild external buffers, the program envisages wide-ranging reforms to address structural weaknesses and enhance resilience to shocks.”
An International Monetary Fund (IMF) team led by Mr. Stéphane Roudet, Mission Chief for Ghana, visited Accra during December 1 – 13, 2022, to discuss with the Ghanaian authorities IMF support for their policy and reform plans.
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