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General News of Wednesday, March 20, 2019
Source: Mynewsgh.com
2019-03-20
Isaac Adongo, Member of Parliament for Bolgatanga Central
Hon Isaac Adongo, MP for Bolgatanga Central, observed that Ghana's Cedi is currently surviving on painkillers that are unsustainable after its sudden two-day performance.
According to him, no one has ever survived the painkillers, which indicates that the measure adopted by the Minister of Finance, Ken Ofori-Atta, to put an end to the depreciation of the cedi compared to other major commercial currencies, does not is not viable.
"It is normal for free-falling currencies to recover from time to time when managers give false badurances, but the market reacts quickly when conditions do not improve. While the government is looking for loans to provide steroids in the short term to resuscitate the sector, it may show signs of recovery but will soon return to its free fall because steroids do not heal, "he said .
In his view, the Bank of Ghana seems to have put prudence at the test and injected huge sums into our extremely precarious net international reserves, warning that this would only worsen our external vulnerability and our ability to withstand external obstacles.
The finance committee member, however, maintains his previous position that the cedi could go through 6 GH ¢ by mid-2019, insisting that the Ghanaian business community be prepared to go through difficult times.
"The cedi will go through 6 (GH ¢ 6 to a dollar) before six months. What can happen? They can not borrow $ 3 billion over the long term to come and solve the problem … now, they go short-term and think … who has ever survived through painkillers? But that's where we are, "he said.
Finance Minister Ken Ofori-Atta said last week that the cedi would be okay in two weeks, suggesting that the government was planning a new capital injection, such as the $ 750 million bridge facility of the Standard. Bank, to face the challenges facing the cedi today.
In an interview with US television channel Metro TV, Paul Adom Otchere, monitored by MyNewsGh.com, Hon Adongo pointed out that nothing could be done to address the cedi's delicate situation against the dollar and other major players. world currencies.
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