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This is one of the toughest moments I have experienced since 1981 – Financial analyst

Joe Jackson Dalex121212 Financial Analyst, Joe Jackson

Sat, 13 Aug 2022 Source: www.ghanaweb.com

Financial analyst, Joe Jackson has described the current economic downturn in the country as one of the toughest he has experienced since 1981.

He believes the situation has been reflected in Ghana's interest rates, depreciation of the cedi, high import bill, credit rating downgrades and among others.

Speaking in an interview on Accra-based JoyNews, the Director of Operations for Dalex Finance bemoaned the high cost of living and low confidence in the local economy.

“The government Treasury bill, 91 days Treasury bill was 12.5% per annum in January, now it is almost 28. That’s what? 200% + increase. What does that do to your planning? What does that do to your budgeting? What does that do to an institution that has given out fixed-rate loans? And what does that do to the issue of raising deposits?

“Because people have now lost confidence in the cedi due to the depreciation we face this year, so people are saying I want to move my money out into dollars, and prices have gone up for everything. So, it’s a tough environment for everybody, let no one be deceived, it’s a tough environment,” he explained.

He further said the current inflation rate which is reached an all time high of 31.7 percent indicates that times are indeed hard for many Ghanaians.

“I think that the numbers speak for itself. Inflation at 31, the cedi has depreciated in the forex bureaus over 9.5, our foreign reserves at a historic low, the downgrade of our sovereign debt and you could go on and on. So, I don’t think there’s any dispute as to how difficult these times are … these are some of the toughest times I’ve faced since 1981,” he added.

Joe Jackson was also of the view that any sign of economic relief must come sooner than later in order to salvage the Ghanaian economy.

He however remained optimistic that Ghana would have in the first quarter of 2023, signed onto an International Monetary Fund to help restore macroeconomic stability and improve investor confidence.

“So obviously the light at the end of the tunnel is Q1 of 2023 and the challenges we face are between now and Q1 of 2023,” he said.

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Source: www.ghanaweb.com
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