Ken Ofori-Atta and Dr. Ernest AddisonÂ
MEMBERS OF the Council of State appear to be having sleepless night over the state of the Ghanaian economy, especially the free fall of the cedi.
The Ghanaian Cedi is currently trading at a little over GH¢10 to one dollar, sending panic among the business community.
Following the disturbing situation, Chairman of the Council of State, Nana Otuo Siriboe, is calling for an emergency council meeting asking members to return from recess to meet managers of the economy.
The council has, therefore, summoned the top managers of the country’s economy to answer urgent questions on various economy and financial issues agitating the minds of the members.
The Minister of Finance, Ken Ofori-Atta and Governor of the Bank of Ghana (BoG), Ernest Addison, are the top officials DAILY GUIDE learnt have been summoned to appear before the Council today, Wednesday, August 24, 2022, all things being equal.
Mr. Ofori-Atta is said to be outside the country.
Sources close to the Council, said the two senior Government officials are to explain to members the reasons for the current rapid fall of the local currency against other major foreign currencies, especially the dollar, and also the current state of the economy as well as the rising prices of fuel.
The government has cited the global downturn, especially COVID-19 and Russia-Ukraine war, as the main cause of the challenge.
The Council of State, per information gathered by DAILY GUIDE, is taking this step in order to help address the challenges by advising President Nana Addo Dankwa Akufo-Addo, accordingly.
The invitation to the top managers of the economy is coming on the heels of the notice served by the Ghana Union of Traders Association (GUTA) to close all shops belonging to its members in Accra on Monday, August 29, 2022.
This, according to the association, is to register its displeasure with the country’s current economic challenges, especially the free fall of the cedi.
Speaking at a press conference in Accra on Monday, August 22, 2022, President of GUTA, Dr. Joseph Obeng, said the depreciation of the cedi has eroded the capital of its members, therefore hampering their operations.
A dollar is currently trading at GH¢10, at black market, inflation is almost at 32%, and the policy rate is currently at 22%, with banks’ lending at around 35%. The cedi was trading around GH¢6 from the beginning of the year.
GUTA further called on the government to act swiftly to address their concerns to salvage the ailing economy.
“The Monetary Policy Rate is 22% meaning that Commercial Lending Rate is over 35%, VAT Standard Rate of 19.25% instead of flat rate of 4%. The huge influx of foreigners in the retail business against our investment loss. Do not review any system to increase duties on importing second-hand clothing. Listen to the concerns of car dealers. Withdraw compulsory maritime insurance policy, we don’t think you should blame us for the high prices of goods in the market. The activities of the black market are also a matter of concern,” Mr. Obeng stated.
However, managers of the economy are currently banking their hopes on the $1.3 billion Cocoa Syndicated Loan and $750 million Afreximbank monies which are expected to hit the country’s accounts within the week, to cushion the crisis situation.
They are expected to use the said monies to shore up the cedi to regain strength against other currencies, especially the dollar, and to address some of the economic challenges.
But the Council of State, which is currently on recess, is returning to this emergency meeting in order to find solutions to the economy and the cedi.
Sources said a member of the Council of State, who was one-time an Executive Member of GUTA, during the administration of the late President Jerry John Rawlings, which experienced a free fall of the cedi, is not happy with the state of affairs.
Meanwhile, the Finance Minister, who is currently out of his jurisdiction, due to medical reasons, is expected to be represented by Charles Kofi Adu Boahen, Minister of State at the Ministry of Finance.
BY Vincent Kubi