The minority supports the depreciation of the cedi by government check

General News on Friday, March 29, 2019

Source: Graphic.com.gh

2019-03-29

The minority in Parliament has declared itself ready to sit on the bipartisan committee proposed by the government to tackle the structural causes of the cedi's depreciation.

Minority members led by their leader, Mr. Haruna Iddrisu, said they would be part of the committee in the interest of the general population to end the depreciation of the cedi.

Members of the parliamentary minority spoke in separate interviews with reporters yesterday shortly after Finance Minister Ken Ofori-Atta informed Parliament that the president had instructed him to investigate. on the structural causes of the depreciation of the cedi and propose measures to remedy the situation.

"The governor and I will form a bipartite committee to proceed immediately," said Ofori-Atta.

Regarding the constitution of the proposed bipartite committee, Mr. Iddrisu said: "We will be pleased to appoint Mr. Cbadiel Ato Forson and Mr. Isaac Adongo to serve on this committee."

Mr. Forson, Finance Minority Critic and Member of Parliament's Finance Committee, said, "We are ready, not only for myself, but also for my colleagues on the Finance Committee. we will stop then, whatever we do and be on board to help them, because it is clear that the government needs help.

Cedi depreciation

On the cedi's depreciation, Iddrisu said Bloomberg had indicated that by the end of February 2019, the cedi was the weakest currency in sub-Saharan Africa.

"What we must understand is that Bloomberg reports that the cedi is 5.45 GH ¢ against a dollar," he said.

Iddrisu, also a member of Tamale South at the National Democratic Congress (NDC), said the rapid depreciation of the Cedi implied a natural increase in interest payment commitments.

"Thus, if the government estimates the interest payment to 16 billion GH ¢, it is likely that this amount will reach 17 billion or 18 billion GH ¢.

"How will he raise the additional billion to compensate for this, especially when the targets and figures in their budget were 4.8 GH ¢ per dollar," he asked.

As a result, Iddrisu said he described the Cedi's mild appreciation as impressive "it was neither here nor there."

"What investors and the private sector need in Ghana is stability, and let them be safe.

If it is 6 GH ¢ per dollar, it remains, but the uncertainty and volatility of the ups and downs worries them and affects them for their planning needs, "he said.

Iddrisu said the cedi's depreciation would end only when the country expands its export base and exports.

"I am afraid that a dollar in cedi will reach 6 billion GH ¢ at the end of the year, as predicted by Bloomberg, which will be worrisome for our country," he said. .

IMF borrowing / exit

The Minority Leader blamed the government for borrowing and spending for consumption, but not for capital spending.

"This is the first government that says to applaud to borrow, I am the biggest borrower.

The government spends on consumption, but not on capital spending that can generate dividends and stimulate economic growth, "he said.

Regarding the country leaving the International Monetary Fund (IMF) program, Iddrisu said the exit, combined with the rebasement of the economy, still posed a threat to the consolidation of public finances.

For his part, the NDC deputy for Bolga Central and a member of Parliament's Finance Committee, Mr. Isaac Adongo, said the government borrowed at a high rate to come and pay wages and salaries.

He added that the cedi depreciated contrary to the badertion of the Minister of Finance that he appreciated it.

Mr Adongo said that the country's economy was worse now than when his country joined the IMF program.

He challenged claims that the country would have met all the conditions imposed by the IMF and said the government had argued for waivers.