The President Nana Addo Dankwa Akuffo-Addo led NPP government inherited the cedi at a strength of 1 dollar to Ghc 4.2 cedis, and after two years of an exceptional prudent management of the economy by the Economic Management Team (EMT) despite the disaster of an economy it inherited plus a huge addition to this government's public spendings through an increase in the wage bill (over 200,000 public employment), fund of new and existing social interventions and policies (Free SHS, Ghana Card and others), payment of existing domestic debts (contractors, lump sum of pensioners under 3 tier and others), reduction in taxes and others, the cedi's strength to a dollar still rested at Ghc 4.9 showcasing only about 70 pesewas depreciation. Note, a comparative assessment of the yearly strength of the cedi to the dollar also reveals that the respective two years (2017 and 2018) under the President Nana Addo Dankwa Akuffo-Addo's rule has been the best since 2013.
Despite the above success chalked by the cedi for the years 2017 and 2018, it is still imperative to know that, the cedi continued to rest at Ghc 4.9 from December, 2018 to around 6th February, 2019, and after, it took a very sharp continuous and consistent depreciation until it landed at Ghc 5.6 at around 17th March, 2019, something most financial experts described as crisis and an indication that the current positive economic indicators are only artificial.
The EMT again proved the worth of their economic prowess by putting in place some short term measures to curtail the situation, and truly it has not only stabilized the cedi depreciation against the dollar but also it has gotten it to appreciate from the 5.6 gh cedis value it was at 17th March, 2019 to around 5.1-5.2 gh cedis to a dollar as at 20th March, 2019.
Note, aside the EMT's long term solution to curb this cedi depreciation canker through the check of the nation's import and export policies and other banking/institutional policies, it is worthy to note that the EMT's medium-term remedy for the cedi which would be with the Eurobond is not yet in, the Eurobond is in fact expected to hit the government's account before the end of April, 2019.
Moreover, the EMT has again proven their competency and the cement of their credibility through the country's 3 billion dollars Eurobond sale which its roadshow got kicked start from London. Note, even though government and some financial analysts were of the expectations that it might take about two to three months to get the Eurobond sales finalized, and also the possibility of raising the entire 3 billion dollars Eurobond was slim, because of how the economy under this current government is strong and its indicators, not artificial emanating from how well it has been managed, the roadshow of the Eurobond started on Monday, 18th March, 2019 but got closed by Tuesday, 19th March, 2019 because it exceeded its target, with the money supposed to hit the government's account before the end of April 2019 making the whole deal getting finalized in less than two months as against the over two to three to four months expectation.
Furthermore, despite Ghana's search for 3 billion dollars offer, it was rather oversubscribed by 7 times, actually, it got tabled with about 21 billion dollars offer for the lead arrangers of Ghana's Eurobond sale to choose from. Note, aside from most financial analysts claiming it to be the highest ever fundraising by a Sub-Saharan African country, the interest rate of the Eurobond Ghana got for that of the 7 years is also the lowest ever for the country.
The above facts, as a result, solidify the fact that the competency of the EMT headed by Dr. Mahamudu Bawumia has truly strengthened the economy of the nation making it one of the best under Ghana's history, as was rightly pointed by Dr. Albert Tourna Mama, Ghana’s Resident Representative at the International Monetary Fund (IMF), in March, 2019, during a panel discussion on Ghana’s macroeconomic environment and how it could attract private sector investment at the ongoing Africa Climate Week (ACW) at the Accra International Conference Centre, that; Ghana’s macroeconomic outlook is now better than five years ago.
Hhhmm, may God be praised always
Nana Kwadwo Akwaa
Member, Critical Thinkers International (CTI)
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