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\n<\/div>\nThe<\/span> Minority in Parliament has asked the\u00a0<\/span>government<\/span> to immediately submit a fresh budget statement to the house, insisting the 2019 budget has been thrown out of gear by the depreciation of the cedis.<\/span><\/span><\/p>\n Minority spokesperson on Finance, Cassiel Ato Forson said investor confidence in the country\u2019s economy is currently lost because of the falling value of the currency. <\/span><\/span><\/p>\n <\/p>\n He told a media briefing in parliament\u00a0house Wednesday the <\/span>loss<\/span>\u00a0in value of the cedis is as a result of poor leadership.\u00a0 <\/span><\/span><\/p>\n Below are hights of the statement to the press.\u00a0 <\/p>\n 1. The Ghana Cedi the weakest in Africa: The cedi\/dollar exchange rate as at 2. We are tired of the propaganda \u2018IGP\u2019 approach to arresting the Cedi.<\/span><\/span><\/span><\/p>\n 3. Government is compounding the woes of Abossey Okai spare parts dealers. 4. Importers are compelled to pay Special Import Levy and higher import duties <\/p>\n 5. Importers whose duty payments have shot up astronomically are forced to 6. It has been reported on various media platforms, both locally and 7. In 2016, investors bought the dollar at an interbank rate of 3.9 Cedi per Dollar. <\/p>\n 8. In the last few months, Ghanaians have had to endure severe economic 9. Ghana has become a net oil exporter following the coming on stream of two 10. Indeed, in the last two years, the NPP Government has received the equivalent <\/p>\n 11. The depreciation of the cedi can be attributed primarily to portfolio outflows 12. Government projected an overall deficit of 4.2 per cent of GDP (excluding 13. The proposed financing options for 2019 further give the indication that the deficit BORROWING GALORE<\/span><\/span><\/span><\/p>\n 14. Government to add GH\u00a26.0 billion to the debt stock by issuing US$3.0 billion Eurobond.<\/span><\/span><\/span><\/p>\n 15. The NPP government is about to give a guarantee to GNPC to borrow about 16. Government is also over-leveraging mineral royalties as collateral to borrow 17. GETFund has also been given the guarantee to borrow $1.5 billion.<\/span><\/span><\/span><\/p>\n 18. The government to borrow $2 billion from Synohydro by leveraging our bauxite 19. Government through Ghana Amalgamated Trust Limited (GAT) to borrow GH\u20b52 billion.<\/span><\/span><\/span><\/p>\n Dr. Bawumia (5) questions:<\/span><\/span><\/span><\/p>\n 20. Question 1: Why would an independent central bank with focus on price 21. Question 2: Why would an independent central bank, with a focus on price 22. Question 3: Why would an independent central bank with focus on price 23. Question 4: Why would an independent central bank with a focus on price 24. Question 5: Clearly, an economy cannot be externally unstable and internally IMPACT OF THE CEDI DEPRECIATION<\/span><\/span><\/span><\/p>\n 25. The depreciation of the Cedi has increased the cost of doing business. Domestic 26. The depreciation of the Cedi has made Ghanaian businesses less competitive.<\/span><\/span><\/span><\/p>\n 27. More Ghanaian businesses have collapse and many more yet to collapse in the 28. Businesses are experiencing a harsh financial situation.<\/span><\/span><\/span><\/p>\n 29. Government lying about growth assumptions because the weak sectoral growth 30. Investor confidence is gradually weakening due heightened uncertainty, and 31. In 2016, investors bought the dollar at an interbank rate of 3.9 Cedi per Dollar. 32. The depreciation of the cedi has overburdened investors with unexpected cost, 33. Government to use all hard-earned revenue to pay loans due to depreciation 34. Nana Addo and Bawumia should please leave the 164 workers of GCB alone 36. Investors have lost confidence in the Ghanaian economy and this sending 37. How can economy be externally unstable and internally stable. Dr. Bawumia 38. The 2019 Budget has been rendered useless. At the time of preparation of the 39. Government has added GH\u00a215.3 billion to Ghana\u2019s external debt due to the 41. In barely 2 years, the NPP government has added GH\u00a280 billion to the public 42. Ghana\u2019s total public debt now stands at GH\u00a2201.8 billion and government has
\u00a0<\/p>\n
3:04pm on 19th March 2019 stood at GH\u00a25.65 per dollar and GH\u00a25.60 per
dollar at Fidelity Bank Ghana Limited and Ghana Commercial Bank respectively.<\/span><\/span><\/span><\/p>\n
They are forced to pay double to clear their goods.<\/span><\/span><\/span><\/p>\n
to clear their goods.<\/span><\/span><\/span><\/p>\n
charge higher prices for their goods and service which has brought untold
hardships on the ordinary Ghanaian.<\/span><\/span><\/span><\/p>\n
internationally, that the cedi\/US dollar exchange rate is expected to reach GH\u00a26
per dollar by the end of the third quarter of 2019.<\/span><\/span><\/span><\/p>\n
Today, these same investors are compelled to buy the dollar at an interbank
rate of 5.65 Cedis per Dollar.<\/span><\/span><\/span><\/p>\n
hardships brought on by the misplaced economic policies of the Akufo-Addo
government.<\/span><\/span><\/span><\/p>\n
additional oil fields worked on by the Mahama Administration. What is the
Akufo-Addo government doing with huge oil revenue inflows that it cannot
manage our exchange rates?<\/span><\/span><\/span><\/p>\n
of GH\u00a26,825,548,529.61 ($1,474,958,169.38) in foreign exchange as oil
revenue but has still not been able to augment its net international reserves
beyond end- 2016 levels.<\/span><\/span><\/span><\/p>\n
(as foreign investors repatriated coupons and principals) and a large current
account deficit mainly due to large trade service charges and interest payments.
The current account at end-December 2018 posted a deficit of 3.2 per cent of
GDP.<\/span><\/span><\/span><\/p>\n
financial sector costs) for the 2019 fiscal year. This policy announcement is
sending negative signals to the investor community because it is inconsistent
with government policy decisions.<\/span><\/span><\/span><\/p>\n
level will exceed 4.2 per cent of GDP.<\/span><\/span><\/span><\/p>\n
$250million for the government using royalties from oil revenue as collateral, which is
against the provisions of the Petroleum Revenue Management Act (Act, 815).<\/span><\/span><\/span><\/p>\n
$200million, which is against the Public Financial Management Act (Act, 921).<\/span><\/span><\/span><\/p>\n
concession that is yet to be mined.<\/span><\/span><\/span><\/p>\n
stability decide to reduce the monetary policy rate against its own research
findings that US policy normalization is strengthening the US dollar and causing
investors to move funds away from emerging economies and that upward
adjustments in domestic prices of petroleum products are likely to affect
transport and utility prices?<\/span><\/span><\/span><\/p>\n
stability, decide to lower the policy rate in the face of dwindling net international
reserves and a rising interest rate abroad?<\/span><\/span><\/span><\/p>\n
stability decide to reduce the monetary policy rate in favour of growth, which
has been projected to be higher than the previous year\u2019s, while the local
currency is under pressure?<\/span><\/span><\/span><\/p>\n
stability decide to lower the policy rate in the face of excess liquidity in the
banking sector emanating from banks increasing their minimum paid-up capital
by over 100 percent, while the local currency is fast depreciating?<\/span><\/span><\/span><\/p>\n
stable. How can a rapid exchange rate depreciation be accompanied with a
single digit inflation rate as captured by the posted macroeconomic indicators?<\/span><\/span><\/span><\/p>\n
businesses that rely on imported raw materials are compelled to pay more in
cedi terms for their raw materials.<\/span><\/span><\/span><\/p>\n
coming days due to the weak performance of the Cedi.<\/span><\/span><\/span><\/p>\n
rates cannot support the overall growth rate.<\/span><\/span><\/span><\/p>\n
this is affecting the real sector.<\/span><\/span><\/span><\/p>\n
As at 3:04pm on 19th March 2019, these same investors are compelled to buy
the dollar at an interbank rate of GH\u00a25.65 per dollar and GH\u00a25.60 per dollar at
Fidelity Bank Ghana Limited and Ghana Commercial Bank respectively.<\/span><\/span><\/span><\/p>\n
as their cedi cannot purchase as much as before in the external market. This
has reduced their capacity to expand their businesses.<\/span><\/span><\/span><\/p>\n
of the Cedi.<\/span><\/span><\/span><\/p>\n
and arrest the cedi. They are bread winners.
35. Nana Addo and Bawumia are worsening our economic conditions and are busy
sacking workers.<\/span><\/span><\/span><\/p>\n
wrong signals to the investor community.<\/span><\/span><\/span><\/p>\n
stop faking macroeconomic indices to deceive us. What kind of economics
wizardry is this? Enough of the lies.<\/span><\/span><\/span><\/p>\n
2019 budget, all fiscal and financial estimates were made using a projected
Cedi\/Dollar exchange of GH\u00a24.8 per Dollar. Currently, the Cedi\/Dollar exchange
is quoted at GH\u00a25.65 per Dollar.<\/span><\/span><\/span><\/p>\n
depreciation.
40. Ghana\u2019s external debt stock as at November 2018 will be translated at the
current exchange rate into GH\u00a2101.3 billion.<\/span><\/span><\/span><\/p>\n
debt stock.<\/span><\/span><\/span><\/p>\n
nothing to show for it. NPP why? Nana Addo will soon sell us.<\/span><\/span><\/span><\/p>\n<\/div>\n