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Recent downgrades due to delay in passage of major fiscal policies – Minister

Dr. Abena Osei Asare121221.jpeg Abena Osei-Asare is a deputy Minister of Finance

Fri, 12 Aug 2022 Source: www.ghanaweb.com

Government is blaming the current downgrades of the country’s credit rating on the delay in the passage of its fiscal policies at the beginning of the year.

According to the Deputy Finance Minister, Abena Osei-Asare, government’s inability to pass some major tax policies like the E-Levy has led to the poor state of investor confidence in the country.

She said “…because clearly if a major revenue measure like the e-levy we were having problems with its passage then clearly it in a way undermines your budget.”

The deputy finance minister who spoke in a JoyNews interview on August 11, 2022 said “so that kick-started the downgrade of the credit ratings and I must say that that has really affected us and affected our confidence on the global front and then domestically as well. And so that has also affected the strength of our cedi.”

On the other hand, the Ghana cedi has depreciated by more than 28% in the last few months of 2022, against other major trading currencies.

Abena Osei-Asare noted that despite the rapid depreciation of the cedi, the currency has witnessed some level of appreciation.

“Truly, I must say that the dollar has gained – when you compare the dollar to the pound and to the euro, clearly you see that the dollar has made some gains, even the pound has depreciated and so has the euro,” she said.

“But that notwithstanding some has to do with our revenue measures initially, but I must say even as we have passed some of these measures, we are hoping that quickly we’ll put ourselves together and work very hard to pursue the policies that we’re pursuing to make sure that we bring back that confidence that is causing so much speculation and resulting in some of these downgrades,” she added.

According to the finance minister, speculation amongst Ghanaians has led to the constant depreciation of the cedi but government is working to restore confidence while fighting to curb the constant depreciation.

“We’ll quickly work hard together because now it is the confidence that we’re hoping to bring back and that will reduce the speculation and will also help with the cedi depreciation against some of the major foreign currencies,” she assured.

SSD/MA

Source: www.ghanaweb.com
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