Executive Director of ASEPA, Mr. Mensah Thompson has once again called for the sacking of the Finance Minister Mr. Ken Ofori Atta.
in a post he made on his Facebook page, the Ghanaian Cedi is in big trouble and what can save it is not “audio money” induced speculatory antics and “steriod” injections, adding that real pragmatic measures backed with a change in policy direction would, but first, the Finance Minister has to go.
According to him, Ken Ofori Atta’s removal alone will boost the Cedi in a much better way than the impact any amount of forex injections can ever have on the Cedi.
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“The $750million Afrexim loan was disbursed a few days ago into BoG’s account abroad, take note not in Ghana.
BoG manages Ghana’s International Reserves.
The International Reserves are the amount of Forex a Country keeps offshore to settle external obligations.
Our Net International Reserves had been depleted and is in the Negatives but International financial standards requires you to keep such reserves and that is why almost all the $713million that has hit BoG account will be swallowed by our IR.
Again by September 15, Government need to find $750million to settle a maturing Eurobond that is due, the $1.3billion Cocoa syndicated loan won’t hit BoG account until mid October.
Assuming you are able to defer the payment of the maturing Eurobond on September 15, it means only $550million out of $1.3billion will be available to BoG.
Mind you the syndicated loan is for a year, it is supposed to be utilized until the next syndicated window.
So $550 divided 12 will give us $45.8million per month which culminates into $11.5million forex injection every week.
This expected $11.5million injection would not have any positive impact on the sinking Cedi, apart from the BDC’s demand pressure, now there’s also huge demand pressures from importers of essential products such as Pharmaceuticals, yesterday I reiterated on radio why there’s going to be an unprecedented shortage of essential medicines very soon and I have admonished Ghanaians who are on essential medications that are imported to at least keep 3-4 months stock as buffer so that in case they can’t find the medication to buy they can rely on the buffer.
I’m not sounding a doom’s bell, your Government won’t tell you this but we can save a life, the Pharmaceutical Companies are also struggling just like the BDCs to find dollars to import their products and just like oil is experiencing forex induced supply gaps, the pharmacos are also experiencing same and it’s only a matter of time for the impact to be felt on a national scale.
The Cedi is in big trouble and what can save it is NOT audio money induced speculatory antics and “steriod” injections, real pragmatic measures backed with a change in policy direction would, but first the Finance Minister has to go…
His removal alone will boost the Cedi in a much better way than the impact any amount of forex injections can ever have on the Cedi.”
In recent times, there have been several calls from various leading members of the society including Former President John Dramani Mahama for the President to fire his Finance Minister Ken Ofori Atta for his abysmal performance in terms of managing the Ghanaian economy.
His Excellency the former President John Dramani Mahama in July this year, called on President Nana Akufo-Addo to undertake a major shake-up in the current composition of his ministerial team.
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According to him, it will serve the President well, particularly in times of crisis such as this, to put to use some of the powers granted him as the appointing authority.
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