IMF Bailout IMF Bailout Will Not Save Cedi, Dep Finance Minister Disagrees

Dr Ebo Turkson says the IMF loan will not halt the free fall of the cedi with some describing the bailout as insignificant.

  • Published:
Ato Cassiel Forson, Deputy Finance Minister play

Ato Cassiel Forson, Deputy Finance Minister

24/7 Live - Subscribe to the Pulse Newsletter!

Economist, Dr Ebo Turskson had downplayed the effects of the initial tranche of $114 million from the IMF, meant to be used to shore up Bank of Ghana’s declining reserves will have on the cedi.

He contends the move would not automatically lead to the rescue of the cedi which in recent weeks, has significantly declined against the dollar.

“Part of the reason why we have gone to the IMF is to stabilize our foreign currency and this is the time that our cedi has started depreciating like it did last year around the same period so we are saying that the IMF has approved this at this time but this is not going to be the solution to our cedi depreciation problem because these are short time measuresm,” he stated.

But Deputy Finance Minister, Ato Cassiel Forson disagreed saying the Ghana cedi will be one of the immediate or major beneficiary of the first tranche of the bailout programme approved by the IMF.

He said he believes the fortunes of the cedi should improve "greatly" when the $114 million is released to the Bank of Ghana.

Speaking to Joy FM, he said a positive appreciation in the cedi will be noticed in the coming days when the money is released although the dollar has been quite stronger over the past months.

He is convinced that the IMF programme is the best for the country at the moment because it will signal confidence in the economy.

However, Currency and Investment Analyst Derrick Mensah believes it might take a while for the cedi to react to the inflows from the IMF.

He noted that businesses and individual will begin to hoard the dollar even if they do not immediately need it for the purposes of transaction.

He said he doubts if the $114 million released by the IMF will cause any significant changes in the economy because it is insignificant.

Recommended Articles

Recommended Videos





Top Articles

1 Crash Vehicle of IGP involved in accidentbullet
2 Zanetor Rawlings' daughter throws him a birthday party [Photos]bullet
3 J.J Rawlings This is the surprise 70th birthday gift of Rawlings...bullet
4 US Embassy Former presidents, Ministers, MPs to queue for visasbullet
5 Bin Atef Ex-Gitmo detainee marries in Ghanabullet
6 Video Man busted with over 60 'stolen' State cars tells his...bullet
7 NPP Government Ghanaians don’t want Abraham Attah as free...bullet
8 Visa row: Ablakwa condemns US embassy over new visa policybullet
9 Adult Content NMC stops TV stations showing pornographybullet
10 Adult Content We will continue showing porn on TV - Ice TVbullet

Top Videos

1 Lynched Soldier Listen to the man who hit Capt. Mahama's head with a blockbullet
2 Prophecy Hundreds will die in floods in 2017 – Prophet revealsbullet
3 Capt. Mahama's Death The account of this 10-year-old will leave you...bullet
4 Lynched Soldier Residents of Denkyira-Obuasi mourn Maj. Mahamabullet
5 Meet "The Beast" President Obama's Cadillac that's more tank...bullet
6 Nigerians stop deportation of chained compatriot in KLM flightbullet
7 Video Four suspects arrested for Captain Mahama's deathbullet
8 Watch Stop taking collection in churches -TB Joshua to Pastorsbullet
9 Ghana@60 Agya Koo embarrassed Ghana at Independence Day...bullet
10 Vitiligo Enam Honya - is challenging what you think...bullet

News