The Minority Leader in Parliament, Dr. Cassiel Ato Forson, has raised concerns about the government’s management of the Ghanaian cedi, warning that it could jeopardize the International Monetary Fund (IMF) program by the end of this year.
Speaking on Thursday, May 16, the minority leader highlighted that the current trend suggests a potential setback for the IMF program, which was previously progressing as planned.
“Let me be honest with you, this program is certainly going to be derailed by the end of this year and it is going to take a while. I have no doubt about that … let’s wait and see. It is actually on the back of the fiscal.”
Dr. Cassiel Ato Forson
Dr. Ato Forson further clarified that the upcoming IMF review, necessary for receiving the third portion of the $3 billion External Credit Facility, will use outdated data from the previous year. This older data doesn’t accurately represent the current economic conditions.
“They were on course but as you know the review dates back. So, the next review is going to use the data as of December last year. So the program indicators to check whether the program is performing or not is going to use data six months before the time of review.
“So, obviously six months before it was good. But I can tell you that based on the data and the way they are conducting the affairs of the policy going forward, there is going to be a complete commotion.”
Dr. Cassiel Ato Forson
Dr. Forson criticized the government’s fiscal strategies, arguing that the measures taken to steady the national currency are inadequate and could harm the economy.
The Minority group believes that excessive spending beyond the budget for political reasons is worsening the depreciation of the cedi against the dollar.
Budget Borrowing Sparks Concerns
On Wednesday, May 15, the minority caucus expressed concerns about the government’s recent borrowing of GH¢7 billion from the treasury bills market. This money was used to pay contractors outside of the budgetary allocations, which raised worries within the minority group.
Minority Leader Dr. Cassiel Ato Forson criticized Dr. Mahamudu Bawumia, Chairman of the Economic Management Team, for what he views as a failure to effectively address the depreciation of the currency.
Dr. Ato Forson emphasized the negative impact of the Cedi’s decline on businesses and called for urgent measures to stabilize the situation.
The former Deputy Finance Minister urged concerned citizens to hold Dr. Bawumia accountable for his performance leading the Economic Management Team, arguing that the administration has not adequately managed economic challenges, especially concerning Cedi stability.
“In spite of the huge inflows of foreign exchange from the IMF and the World Bank, into the Ghanaian economy, and I’m talking of billions of Ghana cedis, billions of US dollars, the government’s action and its management of the cedi have continued to fuel steep depreciation with no end in sight unfortunately.
“So far, the decisions of the Economic Management Team, chaired by our Vice President Alhaji Bawumia leaves a lot to be desired. The reality of the Ghanaian economy today exposes the credentials of the so-called economic wizkid who was marketed as the savior of Ghana’s economy. Alhaji Bawumia’s credibility is now tatters.”
Dr. Cassiel Ato Forson
The Minority’s comments come at a time of rising worries among traders and consumers about the persistent depreciation of the Cedi and its impact on the cost of living.
Traders have been compelled to raise their prices to counter the effects of higher exchange rates, adding to the burden on consumers who are already facing economic difficulties.
READ ALSO: Vladimir Putin In Beijing For State Visit
