Chartered Accountant and the former Minister for Finance and Economic Planning, Seth Emmanuel Terkper has cautioned the government of Ghana not to out-rightly wean itself from the International Monetary Fund, when it ends its ongoing program.
The Former Finance Minister has argued that, Ghana’s program with the Bretton Woods Institution which is set to end this year, should not mark a total departure from the IMF, claiming, the country needs the International body in its current situation.
The Financial expert who saw the current IMF program been entered into by the erstwhile John Mahama administration under his watch as the Finance Minister, has said, What we are facing now is the precise moment the IMF comes and provides foreign exchange,” hinting that, “we may be losing that opportunity,” should we [Ghana] exit now.
Speaking on The Pulse on Joy News on Wednesday, Seth Terpker argues that, even if the government wants to exit the program at the end of March, they should not “exit completely.”
He however believes it is time for the country to look at its economic challenges as one people and find remedies to them. “it is time to focus on the issues collectively and look at solutions… what solutions can be structured and what solutions over time which would increase the supply of foreign currency” – Seth Terkper said on the Pulse program.
Adding that, “people need the dollars to pay for import (the demand side) and the cocoa farmers, the miners and others, who are boosting the supply. So at various points, what is needed to support import may be lower than what is available to support that import”.
The country has been facing some economic challenges, with its currency, the cedi, witnessing depreciation since the beginning of this year.
Against this background, the government, through the Bank of Ghana (BoG) has disclosed, it will pump at least $800 million to the country’s reserves this month to stabilise the cedi against its major international currencies, especially the dollar.
Since January this year, data from the Central Bank indicates that the cedi has lost some 3.6 per cent of its value to the US dollar as the international investor community sold some of their investments in local securities and moved their funds overseas, partly causing the cedi to slide.