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New IMF cash to stabilize cedi

Aug. 30, 2017, 3:13 p.m.

Ghana’s ability to attract another tranche of disbursement by next month under the IMF deal, should strengthen the local currency and restore investor confidence in the economy.

That is the assertion of some Economists who have been speaking on the Fund’s progress with the government of Ghana.

The comment also comes ahead of the government’s meeting with the Board of the International Monetary Fund (IMF) on Wednesday.

The meeting, Citi Business News understands will among others look at the exit plan for Ghana in December 2018.

Economist, Daniel Amarteye Anim explains that the outcome of the discussions will be very critical for major investment decisions.

“We need to beef up our foreign reserves and when the Nana Addo administration took over, one of things that it has done is to raise bonds to among others ensure that the cedi is stabilized. If you look at the past three months also, there has been some fair stability in the cedi in respect to the international currencies. So as we receive more of the funds, it will further consolidate the foreign investors’ confidence within the economy knowing very well that the IMF has a hand in ensuring that we have fiscal discipline,” he asserted.

In addition, Mr. Amarteye Anim stated that the release of the remaining tranches will assist in job creation.

This he believes will relieve the government the burden of providing jobs as it will be able to equip the private sector to expand their operations and employ more people.

“Also, government will be able to come out with innovative ways to create jobs not necessarily employ people into the civil service which will escalate the wage bill.”

Ghana entered into the agreement with the IMF in 2015 for economic support of 918 million dollars.

The agreement was among others to restore economic stability and maintain fiscal discipline.

So far, the country has received 464.6 million dollars under three separate tranches.