Finalize IMF deal or cedi will endure – Economist

Enterprise Information of Wednesday, eleven February 2015


Ghana Cedis 19Nov2010

The Head of the Finance Division of the College of Ghana Enterprise Faculty is warning that any delay in finalizing a bailout program with the Worldwide Financial Fund (IMF) might outcome within the depreciation of the cedi.

In line with Dr. Godfred Bokpin, the monetary help this system comes with, may help shut present gaps within the 2015 price range to stabilize the cedi.

The cedi has loved relative stability because the final quarter of 2014, after depreciating in extra of 30% towards main buying and selling currencies within the first three quarters of that yr.

President Mahama has assured that a program with the IMF might be finalized earlier than shut of subsequent month after a number of failed timelines prior to now.

Chatting with Citi Enterprise Information Dr. Godfred Bokpin was optimistic a deal will quickly be finalized due to the adverse implications if Ghana fails.

“The choice to go to the IMF paid off even within the overseas trade market and with the issuance of the Eurobond, now we’ve got to work to make sure that the deal is agreed and that implementation has began…in any other case if we don’t work so onerous to finalize this system we’ll see some degree of strain being introduced on our foreign money (Cedi)”, he confused.

Ghana began talks with the IMF in September 2014 for a bailout program, following challenges with its financial system.

Head of Normal Chartered Financial institution’s Africa analysis Razia Khan has predicted the cedi will depreciate to four cedis 20 pesewas towards the US dollars earlier than shut of yr.

However the prediction can be revised if Ghana secures a program with the IMF. The IMF lately described nearly as good progress efforts to wash up Ghana’s payroll earlier than a bailout program is finalized.