Finance Minister, Ken Ofori Atta has said that the the impasse in Parliament is adversely affecting government business such as the passage of some revenue bills including the E Levy bill.
According to him, this is creating uncertainty, which has been highlighted as a key risk by the Ratings Agencies and affected our credit spreads, limiting our access to the International Capital Markets.
The adverse global developments are influencing severely on exchange rate depreciation and domestic inflation as investors take refuge in safer assets, by stocking up on the dollar, which is considered the safest currency to hold, he said.
The dollar has in recent weeks gained its highest level since Covid-19 two years ago, he added.
The Minority and Majority in Parliament have been engaged in heated debate over move to pass the E-levy. During the first session of the8th Parliament, there were fisticuffs among the lawmakers.
Addressing a press conference in Accra on Thursday March 24, he said “The cedi has not been spared. Cumulatively, our local currency has depreciated by 15.6% against the US dollar, and 13.4% and 13.3% respectively against the Pound Sterling and Euro, in the year to 23rd March 2022.
“This, understandably, is causing a lot of anxiety among traders and consumers alike. However, we also need to recognize that, in spite of it all, the cedi has held under these extreme challenges better than it did between 2014 and 2015.
“This is because the fundamentals are stronger. The Bank of Ghana has announced measures to address the exchange rate depreciation and we believe in the propriety of the measures they outlined on Monday.”
