Vice President, Dr Mahamudu Bawumia
Chartered Economist, Mr Emmanuel Amoah Darkwa, has said, Ghana’s new rating from B- to B is not out of place. Speaking on Frontline on Rainbow Radio 87.5FM, he said, some indicators might have contributed to the new rating.
According to Standard and Poor’s, it raised Ghana’s rating following "improved monetary policy effectiveness’’ and stable economic outlook.’’
The report which was released on September 14, 2018 said, "Ghana’s improving banking sector stability and lower inflation supports our view that the effectiveness and transmission mechanism of its monetary policy have improved. We there raising our long-term ratings on Ghana to ‘b’ from ‘B-‘. We are affirming to short-term foreign and local currency sovereign credit ratings at ‘B’. The outlook is stable.’’
Mr Amoah Darkwa in answering whether the rating could have any global effect on Ghana’s economy said, investors will have confidence in Ghana’s economy because they are investing in your economy. It is a good sign and will encourage investors to come in and invest in Ghana.’’
The rating will also help the country get access to loans and monetary supports. He was however quick to ask if these ratings have trickled down to ordinary Ghanaians hence the need for government to roll out more policies for people to feel the impact.
Ghana’s currency is struggling to be at par with major trading currencies especially the US dollar.
Vice President Dr. Mahamudu Bawumia has said, the ruling NPP has managed the situation better than the NDC due to the 7 percent depreciation recorded over the past 18 months.
Dr. Bawumia largely blamed the cedi depreciation on the strength of the US dollar, saying the other currencies like the pounds were also struggling.
Meanwhile, the Minority in Parliament has rubbished this claim. Commenting on this, Mr Amoah Darkwa underscored the need for proper analysis if we want to compare between the previous and current administration.
For the currency side, we need to look at our import bill against our export, debt sustainability- all these forms part of the rating.
He believes it would be too early for anyone to feel vindicated.
