Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has said that the bank and other key stakeholders are already aware of what the implications of the anti-lgbtqi bill will have on foreign exchange flows.
He says the Ministry of Finance has already explained the potential impact of the bill on the economy.
Asked whether the bank has analyzed the possible implications of the bill on its operations, while answering questions at the 117th Monetary Policy Committee (MPC) press conference in Accra on Monday, March 25, Dr Addison said “The Ministry [of Finance] has come out very clearly on what the implications are in terms of the possible loss of resources from the World Bank and all of that, so we are aware of what the implications of [anti-lgbtqi bill] could be on foreign exchange flows.
“As of now, we are confident that at least in 2024 we will not see any major changes in our foreign exchange forecasts in terms of flows expected for this year. My assurance that the Cedi will be relatively stable also applies.”
The Ministry of Finance on Monday, March 4 pointed out dreadful implications of the president assenting to the anti-LGBTQ+ Bill.
In a brief on the implications of assenting to the Bill by President Akufo-Addo, the Ministry of Finance said the country stands to lose huge financial support from the Bretton Woods institutions.
“In total, Ghana is likely to lose US$3.8 billion in World Bank Financing over the next five to six years. For 2024, Ghana will lose US$600 million budget support and US$250 million for the Financial Stability Fund. This will negatively impact Ghana’s foreign exchange reserves and exchange rate stability as these inflows are expected to shore up the country’s reserve position,” part of the brief cited by 3news.com reads.
Addison explains why Ghana’s economy is growing but the Cedi is depreciating
The Ministry of Finance provided the details as follows:
- The expected US$300 million financing from the First Ghana Resilient Recovery Development Policy Operation (Budget Support) which is currently pending Parliamentary approval might not be disbursed by the Bank when it is approved by Parliament;
- On-going negotiations on the second Ghana Resilient Recovery Development Policy Operation (DPO) for budget support amounting to US$300 million may be suspended;
- On-going negotiations for US$250 million to support the Ghana Financial Stability Fund may be suspended;
- Disbursement of undisbursed amounts totaling US$2.1 billion for ongoing projects will be suspended; and
- Preparation of pipeline projects and declaration of effectiveness for two projects totaling US$900million may be suspended.
The Ministry cautioned that, “The potential loss of these financial resources will create a financing gap in the 2024 budget that the government must address through additional domestic revenue mobilisation and a significant reduction in expenditure. Failing this, Government’s ability to achieve the targets in the 2024 Budget will be undermined and the IMF-ECF Programme is likely to be derailed.”
Parliament on February 28 passed the Promotion of Human Sexual Rights and Ghanaian Family Values Bill.