IMF announced support for Ghana Amidst rising inflation
IMF Managing Director Kristalina Georgiva reaffirmed the organization’s commitment to working with the Ghanaian government to develop an economic program by the end of this year, she said this yesterday, September 5, 2022.
She claims that exogenous shocks like COVID-19 and the Russian/Ukraine War are to blame for Ghana’s current economic troubles rather than self-inflicted ones.
The conversations between Ghana and the Fund have advanced gradually, as Kristalina Georgiva also noted.”We must help Ghana because its success adds to the success of its neighbors and builds a stronger global community.”
A Finance Expert, Dr. Williams Peprah, has described the announcement by the Managing Director of the International Monetary Fund, Kristalina Georgiva, as timely that will ensure Ghana gets a programme before the end of the year as a boost to investor confidence.
According to him, it will also help slow down the depreciation of the cedi and the rising inflation.Dr. Peprah who is an Associate Professor with Andrews University in Michigan, USA, told Joy Business the announcement will come as a huge relief to the economy which has come under pressure in recent times.
“This announcement is coming at an important time and the inflows will also come at an appropriate time to support the country’s balance of payments.
If we look at our country and our cash flow situation, the government is likely to get an inflow from the cocoa syndicated loan which could take Ghana through the situation up till December 2022”.Dr. Peprah explained that the financial support from the IMF will improve the Ghanaian economy significantly.
According to him, the perennial pressure of the cedi in the first quarter of every year, as a result of repatriation of profits of multinational firms will ease significantly due to the implementation of the economic programme by that period.
“During the first quarter of 2023, there will be a lot of pressure from international institutions in Ghana that will be repatriating their profits out of the country.
So the IMF money will help in stabilising the currency situation and slow down the cedi’s depreciation”.