President Nana Addo Dankwa Akufo-Addo has admitted that times are hard economically and that his government is working assiduously to provide relief to the citizenry.
He stressed in an address on the economy that his administration was ready to work towards restoring and resetting the economy on the path of progress and stability.
These views were contained in his October 30, 2022 address to the nation on the state of the economy.
"For us, in Ghana, our reality is that our economy is in great difficulty. The budget drawn for the 2022 fiscal year has been thrown out of gear, disrupting our balance of payments and debt sustainability, and further exposing the structural weaknesses of our economy.
"We are in a crisis, I do not exaggerate when I say so. I cannot find an example in history when so many malevolent forces have come together at the same time," he added.
"But, as we have shown in other circumstances, we shall turn this crisis into an opportunity to resolve not just the short-term, urgent problems, but the long-term structural problems that have bedeviled our economy.
"I urge us all to see the decision to go to the International Monetary Fund in this light," he stressed.
Watch Akufo-Addo's full address on the economy below:
On other issues, he updated citizens on progress made with IMF negotiations and also efforts to stabilize the economy in the midst of rapidly depreciating currency and galloping inflation.
Among the measures cabinet took after a three-day retreat aimed towards preparing for the address were as follows:
1) enhanced supervisory action by the Bank of Ghana in the forex bureau markets and the black market to flush out illegal operators, as well as ensuring that those permitted to operate legally abide by the market rules. Already some forex bureaus have had their licenses revoked, and this exercise will continue until complete order is restored in the sector;
2) Fresh inflows of dollars are providing liquidity to the foreign exchange market, and addressing the pipeline demand;
3) the Bank of Ghana has given its full commitment to the commercial banks to provide liquidity to ensure the wheels of the economy continue to run in a stabilized manner, till the IMF Programme kicks in and the financing assurances expected from other partners also come in;
4) Government is working with the Bank of Ghana and the oil producing and mining companies to introduce a new legal and regulatory framework to ensure that all foreign exchange earned from operations in Ghana are, initially, paid to banks domiciled in Ghana to help boost the domestic foreign exchange market; and
5) the Bank of Ghana will enhance its gold purchase programme.
Watch the president’s address below:
