Browsing: Economy and Finance

The Chamber fears a shortage in fertilizer supply is imminent which could also create rising food costs.

Fitch Ratings in a podcast said Ghana’s international reserves position has become very reliant on Eurobond issuance. Indicating that, Ghana is not in a situation where the government needs to constantly roll over hard currency debt or whose debt market is wholly reliant on non-resident investors. In supporting the Fitch’s position, the University of Ghana economist noted that, a careful look at the template that Ghana sent to the IMF in 1965 under the watch of Dr Kwame Nkrumah, which is a reflection of what has been happening over the years, there’s only one thing left which is keeping us from going to the IMF right now and that has to do with the depreciation of the cedi.

The c protested the reduction in benchmark value from 50 percent to 30 percent by the government saying it will result in high production cost and affect cement prices.

The Russia-Ukraine invasion induced unprecedented spike in crude oil and gas prices is troubling many economies. This, coupled with the escalating U.S dollar exchange rate to the local currency (Cedi) threatens petroleum products supply in the country.

The judgment regarding the issue of whether or not a deputy speaker  of parliament presiding can vote, the Supreme Court Justices concluded that the 138 members on the majority side including deputy speaker presiding  who voted to approve the 2022 budget was valid.  The implication is that the E-levy was passed on 30th November 2021. It also means the 2022 budget was fully approved.

the Ghana Union of Traders (GUTA) has called on regulators of the forex market to fast-track the proposal of making the Chinese Yuan as the only trading currency when doing business with China. They believe such a move will reduce pressure on the Cedi because imports will not be done with US dollars as most Ghana’s import currently come from China because of their cheaper products and cost. 

With the recent hike in petroleum prices in the country, year on year inflation is expected to rise further in the coming month as it would have a severe impact on both food and non food inflation of the Consumer Price Index, (CPI) basket.

The former Executive Director at Standard Chartered Bank, Alex Mould has said, currently the country is practising “cash accounting”, that is, “we pay as we go”. This is ok for steady payments but not good for intermittent large payments like EuroBond principal repayments. 

Another sign before Covid -19 was that instead deploying policies to support the efforts of the Bank of Ghana to manage the currency, the government usurped the constitutional mandate of the Bank of Ghana to establish exchange rate management committee which could not deliver. 

Key ministers in the current Akufo-Addo/Bawumia government are on deliberate spree of deceit to hide the truth about the initiation of the Electronic Transaction Levy (E-Levy).