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