The Ranking Member of Parliament’s Finance Committee, Dr Cassiel Ato Forson likened the depreciation of the country’s currency to the rate at which fresh coconut falls.
According to him, the Akufo-Addo government has riddled the economy with loans despite the outstanding debt the country continues to battle with.
“The currency is depreciating by the day, in fact, the cedi is falling like fresh coconut. Another flagship programme that I have seen with this government is; One programme, One loan.
“Already your debt is not sustainable, yet all that this administration wants to do is get an opportunity to go back there and borrow,” he stated.
He made the assertion after the Standards and Poor’s [S&P] Rating Agency downgraded the economy from B- to CCC+.
The American credit rating agency also reviewed the country’s economic outlook as negative, reflecting “Ghana’s limited commercial financing options, and constrained external and fiscal buffers.”
According to the S&P, the Covid-19 pandemic and the Russian invasion of Ukraine have complicated Ghana’s fiscal and external imbalances.
The agency further affirmed that Ghana’s absence from the Eurobond markets has gravely affected its economy.
However, Dr Forson insists that the downgrade will only intensify the sufferings of business owners and the average Ghanaian.
“The downgrade means a lot, not only to government but to Ghanaian businesses, to state-owned enterprises.
“If your country is downgraded from B- to CCC with a negative outlook. In fact, all Ghanaian banks, both private and government banks, are going to be affected by this,” he explained.
Meanwhile, the spokesperson for the Ghana Union of Traders’ Associations (GUTA), Joseph Paddy has bemoaned the poor performance of the cedi.
According to him, the depreciating currency is threatening the survival of local businesses.
“The manufacturing sector is also suffering the same consequences because they import their raw materials, therefore if we are not careful, at this point in time, businesses will collapse.”
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