Deputy Communications Director of the New Patriotic Party, Richard Nyamah, has blamed the sapping cedi on the IMF programme which Ghana entered into in 2015 in the face of the economic challenges faced by the country.
The cedi, which trades at 5.2 cedis per dollar today, has grabbed headlines in the last two weeks due to its alarming depreciation against major international trading currencies.
Though some analysts have blamed the situation on the import dependent nature of the country, the NPP communicator thinks there is more to it than that.
He argued the United States depends heavily on imports yet has a buoyant economy, suggesting Ghana’s case is a peculiar one.
According to him, the cedi will continue to struggle Ghana exits the IMF extended credit facility programme in April.
Speaking on TV3’s New Day Tuesday, Mr. Nyamah said, the IMF is to blame for the woes of the cedi.
“The weakness of the cedi is partly the problem, because the IMF as part of their conditionality; we are not supposed to prop up the cedi, we cannot use our hard-earned dollars to prop-up the cedi before we get out”, he said.
He however expressed optimism that the cedi will take form once the IMF programme comes to an end.
“As part of the conditionalities we had under the IMF which we are getting out by April, things will obviously change and if you have observed, the minister[finance minister] gave a two-week window within which the Cedi should see some appreciation because the processes of getting out of the IMF is almost complete”, he explained.
Under the agreement, the IMF was to provide Ghana 918 million dollars in support of the country’s medium-term economic reform programme.
It aimed to restore debt sustainability and macroeconomic stability to foster a return to high growth and job creation, while protecting social spending.
“It will obviously [improve], you mark it. In the next few weeks when we have fully gotten out of it [IMF programme] and we are managing our own affairs”, he emphasized.
He observed that the IMF has virtually taken over the management of the country because it lost confidence in the country and that until such a time that Ghana is weaned off, it will be difficult to inspire investor confidence.
By P. D Wedam|3news.com|Ghana