Adnan Adams Mohammed
An economist with the University of Ghana has expressed hope of taming the unprecedented free fall of the local currency, Cedi, if the economic conditions remain same as expected this year.
As many economists are expecting the fall in global oil prices, the successful suspension of external debt payments by the government, and the possible IMF Board approval for the Extended Credit Facility (ECF) will help the managers of the economy have the power to control the exchange rate.
The Lecturer cum Honorary Fellow at Solidare Ghana, likened 2022 economy to the days of the “Kalabule” years between 1972 and 1982 as the Ghanaian Economy went through turbulence in 2022 with inflation and exchange rate hitting unprecedented levels of 50.3% and GHC14.3 to US$1.0, respectively.
“The control of the exchange rate will build up into a reduction in inflation since the greater part of the Ghanaian inflation is imported”, Professor Lord Mensah, a lecturer at the UG Business School indicated in his expectations for 2023.
Although, unenthused about the way the government is handling the Domestic Debt Exchange Program (DDEP), he indicated that 2023 is sequentially going to be about government completing the ongoing DDEP; Have an IMF Board level program approval within the year’s first two quarters; and Leverage on the domestic debt exchange program and the IMF board-level approval to negotiate external debt exchange.
