Cedi depreciation shows mid-year budget review failed to win investor confidence – Mahama

Former President, John Dramani Mahama has said the continuous depreciation of Ghana’s cedi “in recent days, clearly shows that the mid-year review of the 2022 budget failed to win back the confidence of the investor community”.

The cedi as of August 9 is selling at GH¢9.12 to the US Dollar.

The former President in a message on his Facebook post wrote:

“There appears to be no end to the problems with the Ghanaian economy, with the recent downgrade to CCC+/C Junk status.

“The steep depreciation of the Ghana Cedi in recent days, clearly shows that the mid-year review of the 2022 budget failed to win back the confidence of the investor community and the Ghanaian public.

“Unfortunately, no credible remedial plans have been put forward by the government to salvage the economy.

“A national dialogue on the economy, bringing some of our best brains together will serve us well, even as we prepare for debt restructuring and negotiation of an IMF programme.”

S&P Global Ratings in a statement issued on Friday, August 5, 2022, said though government has taken steps towards consolidating the fiscal deficit, including the recent passage of the Exemptions bill, high borrowing costs and softening growth make it difficult to put debt to GDP on a downward path.

After a careful assessment of the economy, S&P also reviewed the country’s economic outlook as negative. The negative outlook, reflects Ghana’s limited commercial financing options, and constrained external and fiscal buffers.”