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World Bank Country Director Henry Kerali urges the government to accelerate ongoing structural reforms to help Ghana improve its exports and local consumption.
According to Kerali, this could help stabilize the local currency firmly in the medium term and address the long-term depreciation of the Ghana cedi each year.
The cedi challenge for this year
The local currency has again come under pressure and is currently selling around 5.30 GH ¢ to 1 dollar.
According to some of the big commercial banks, the local currency has depreciated more than 4% since the beginning of the year.
This development has been linked to a limited supply of dollars in the market, despite strong demand from companies to finance their imports.
There have been calls for the BoG to significantly increase the supply of US dollars in order to quickly maintain the rapid depreciation rate.
However, people close to the Bank of Ghana have said they must show a strategy so as not to exhaust all the reserves of the country, which would represent more than 7 billion dollars.
The Bank of Ghana has ensured that the sustained depreciation we witnessed last month would be completed very soon.
Bank of Ghana Chief Financial Officer Stephen Opata said it was based on recent developments in recent days.
Policies to stabilize the cedi
Sending to JoyBusiness, Kerali said some of these reforms should target the agricultural sector, in order to contribute to a significant improvement in Ghana's exports and local production. local production could replace the dollars, which would go a long way to reducing the pressure on the cedi. "
Fiscal and monetary measures
Mr. Kerali noted that the creation of the Fiscal Policy Council was going in the right direction, which should give foreign investors an badurance that, in the short and medium term, will improve investments of foreign directors (FDI) in Ghana.
He argued, however, that this should be complemented by improved domestic revenue mobilization and industrialization. He also thinks it would help stabilize the cedi in the short and medium term.
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