The claim by the President of the Forex Bureaux Association of Ghana, K. T. Dadzie, that the recent free fall of the Ghana cedi against the major international currencies is not natural is one of the leading stories in the Ghanaian press on Thursday.
The Graphic reports that the President of the Forex Bureaux Association of Ghana (FBAG), K. T. Dadzie, has confirmed that the recent free fall of the Ghana cedi against the major international currencies is not natural.
He said it was being done by people speculating and trying to make a windfall out of the situation.
He said that manifested greatly last Tuesday when the mere announcement that the Bank of Ghana (BoG) was going to meet the association stabilised the currency and the Ghana cedi started appreciating in value.
Mr Dadzie made the confirmation when the executive of the association called on President Nana Addo Dankwa Akufo-Addo at the Jubilee House in Accra.
The meeting was to discuss issues concerning the forex market and for the government to brief the association on the road map to reverse the current economic challenges, as well as update it on the negotiations with the International Monetary Fund (IMF).
Mr Dadzie expressed the hope that the meeting with the President would help in reversing the trend, noting: “I can tell you from what happened yesterday to today that the cedi is already stabilising.”
He indicated that the association was a regulated body which did not have much control over the rates of depreciation of the cedi but had, in the last three months, witnessed volatility which had not been easy for its members, customers and the nation.
President Akufo-Addo described the proliferation of the black market and its drive of both the supply and the rate of foreign exchange transactions in the country as “unacceptable”.
The newspaper says that the leadership of universal banks in the country and the Association of Forex Bureau Operators have agreed to work in close collaboration to stem the rapid depreciation of the Ghana cedi.
This comes on the heels of a high-profile meeting between the Bank of Ghana (BoG), the leadership of universal banks and the Association of Forex Bureau Operators in Accra on Tuesday, October 24, 2022.
The meeting, the first of a series of engagements, brought together stakeholders within the foreign exchange market to deliberate on how to streamline, sanitise and provide clarity on the supply of forex in the country.
In his opening remarks, the Governor of the BoG, Dr Ernest Addison, acknowledged that though the global economic meltdown occasioned by the geo-political tension between Russia and Ukraine had caused supply-demand imbalances in several commodity markets, high inflation, high-cost of living and high uncertainties in financial markets, the BoG was poised to work with relevant stakeholders to stabilise the foreign exchange market and help contain the fall in value of the cedi.
“Available data indicate that we started the year GH¢6 to the dollar. It got to GH¢7 and we stayed at GH¢7 in June, GH¢7.6 in July, GH¢8 in August, GH¢9.6 in September and now it is GH¢12.5. But we are here again with people sending messages that the dollar-cedi rate is GH¢15 to a dollar.
“Clearly, this type of movement does not deflect changes in the fundamentals. It is clear that the market is not functioning properly. We are seeing speculations taking over under very disorderly market conditions and it appears now the black market is rather driving exchange rates. This we cannot allow to continue,” he said.
Present at the meeting were Managing Directors of the GCB Bank PLC, Fidelity Bank, Ecobank, Societe General, Absa, Stanbic Ghana, First National Bank, and Bank of Africa, among others, as well as heads of the Association of Forex Bureau Operators.
The leadership of the banks blamed the rapid depreciation of the cedi on a wide array of issues.
The Ghanaian Times reports that the Association of Ghana Industries (AGI) has expressed its readiness to support President Nana Addo Dankwa Akufo-Addo to steer the country from the current economic stress.
The President of the association, Humphrey Ayim-Darke who led a delegation to meet with the President at the Jubilee House in Accra yesterday, pledged the group’s support for the government.
“Mr President, we recognise your relentless efforts to steer our economy to the pride of place and the desire to transform our economy to the best of your ability.”
“We pledge our support that together we shall resolve the difficulties,” he said
The purpose of the meeting, held behind closed doors after initial opening remarks, was to discuss the economic programme the government is discussing with the International Monetary Fund (IMF)
It also created the platform for the government to give the AGI members details of the government’s programme and seek their support and suggestions.
President Akufo-Addo was optimistic that the IMF programme would have an important impact on the economic future of the country
He said negotiations with the IMF would conclude soon.
The government’s delegation at the meeting, led by the President, included the Chief of Staff, AkosuaFremaOseiOpare, the Minister of Finance, Ken Ofori-Atta, Minister of Trade and Industries, Alan Kyerematen, among others.
The AGI delegation also included representatives of top businesses such as Zoomlion, Unilever, Coconut Groove, Wellman Ghana, FC Perfumery and Irani Brothers, among others
The President also held closed-door meetings with the Ghana Association of Banks and the Council of state on the economic issues the economic stress the nation is facing.
The Ministry of Finance and the Bank of Ghana have commenced discussions with the IMF for an IMF-supported programme.
The purpose of the programme is confirmation that Ghana’s debt is on a sustainable path.
Consequently, the government is putting together a comprehensive post COVID-19 economic programme which will form the basis for the IMF negotiations.
The newspaper says that the Minister for Lands and Natural Resources, Mr Samuel A. Jinapor, has said that Ghana needs strong, moral and authoritative voices to win the fight against galamsey.
He, therefore, called for support from faith-based organisations in the country to join the fight against the menace.
Mr Jinapor said these when he met the leadership of the Ghana Christian Council to support the government halt the illegal mining menace in the country.
Describing the engagement with the Council as productive, impactful and useful, Mr Jinapor said the meeting was in line with the President’s quest to mobilise a broad-based national support for the ongoing fight against illegal mining.
He said the overarching outcome was the Council’s agreement to work together with government to address the illegal mining situation.
“We need strong and authoritative voices to be able to transform the hearts and minds of the Ghanaian people,” he stated.
The Mr Jinapor meeting in Accra was part of series of engagements with key stakeholders, including the Council of State, in an efforts to obtain reliable and sound inputs to help government fashion out appropriate steps to, among others, fight the illegal mining canker, improve mining operations and enhance the ecological system of the country.
Mr Jinapor further lauded the Council for their patriotism, nationalism and unflinching commitment to helping the government tackle the old-age problem of illegal mining.
On behalf of the Council, the Chairman of the Christian Council of Ghana, Prof. Joseph Obiri Yeboah Mante, pledged their unwavering support to collaborate with government to curb the menace of illegal mining.
The council also used the occasion to present to the Minister a copy of their statement which sought to call for a temporary ban on small scale mining.
The meeting was also graced by the Presiding Bishop of the Methodist Church, Ghana, Most Rev. Dr Paul Boafo, and a host of other Christian leaders.
GIK/APA