Ranking Member on Parliament’s Finance Committee, Isaac Adongo has dismissed Finance Minister Dr. Amin Adam’s prediction that the Ghana Cedi will soon regain strength against the US dollar.
Adongo advises businesses that need dollars to ignore the Minister’s assurance and take necessary actions to secure their needs, casting doubts on the likelihood of a quick recovery from the cedi’s recent depreciation.
His comments follow a statement by the Finance Minister, Dr. Mohammed Amin Adam, that the economy is going to be revamped since Ghana has officially completed its debt restructuring.
Speaking to journalists in Parliament Wednesday, June 26, 2024, the Member of Parliament for Bolgatanga Central advised businessmen who need the dollar to go ahead and secure it for their businesses.
The MP, however, advised against persons who don’t need the dollar but purchase it for speculative purposes.
“Please, if you have to run your business and you need dollars, just go ahead and buy them. Don’t be listening to what Mohammed Amin, who said that you should want the dollar the next day.
“We want the dollar several months ago when you got 1.2 billion, and it is rising. Do you get it? Don’t lose out when you need money to run your business. Of course, I discourage people from speculatively buying their dollar when they don’t need it. But if you need it for your business, by all means, go ahead and do it. Don’t listen to him, because it will not happen,” he stated.
The legislator indicated further that the amount secured from the IMF is going to be kept in the nation’s reserve to repay the debt when the time comes.
He explained that it is part of the IMF’s regulations for the funds not to be spent.
“The IMF monies are not meant for the liquidity in the market. The IMF program is saying that all the monies they are giving us, including the World Bank, the dollars, should be kept in our reserves.
“The reason is that when repayments start, we will need the dollars to pay. So they are protecting the repayment of the funds in foreign currency. So they are asking us not to pump the dollars. We want to make sure that you have enough dollars to repay.
“In fact, it’s part of the IMF program. It is actually a benchmark and a target that is set. And if you look at the numbers, all the numbers, if it is when you tally all the flows that are coming from IMF and the World Bank, that will give you those numbers at the end of the year.
“So, no cedi of the IMF-World Bank money will be used to intervene in the market, else we’ll violate and breach the IMF agreement. And the principle behind that is simple. By the time you’ll be repaying, you’ll be repaying in dollars,” the MP explained further.
Adongo shoots down Bawumia’s tax amnesty initiative; says it is dead on arrival
