Ghana’s International Reserve is Almost Depleted- IMF Report to Ghana
The International Monetary Fund in its Regional Economic Outlook 2023 report indicates that Ghana’s economy is almost at the edge of collapse since its net international reserve is deteriorating significantly.
They emphasized in their report that, Ghana’s International reserves are almost depleted due to the poor economic policies and lifestyle.
With this report, the worldtrending247 team delves deep into it to see what might probably cause this too well-recognized county and respected country like Ghana which is now by the IMF begging for a $3b bailout.
The report shows that if steps are not taken, Ghana’s international reserve will fall short and will be exhausted by the end of 2023 with three weeks of import cover (0.8 months).
Based on this new report, it seems the only possible solution is the International Monetary Fund bailout of 3 billion loans since the stabilization of Ghana’s economy now and in the future is dependent on it.
However, this report is vastly contrary to the country’s central bank (Bank of Ghana) report. According to the Bank of Ghana’s Summary of Economic and Financial Data Report, it is estimated that the country’s reserve for 2023 will last 2.7 months of import cover and also the BoG report showed that this value stood a little above two (2) weeks (0.6 months) of import cover in 2022.
What the IMF report indicates is that, if the country’s foreign inflows stop then there will be serious economic crises and many Ghanaians will suffer greatly. The economy will perish inflicting serious hardship on the ordinary Ghanaian. When the country’s foreign inflows cease, it will directly translate to limited dollars in the country’s reserves for the balance of payment transactions.
This alarming news has hit the country’s core; investors are scared of coming to the country and existing ones are scared of losing their capital and businesses.
This report is rooting out the benefits of the IMF $ 3 billion bailout loan and how critical it is for the survival of Ghana’s economy.
Until the IMF Bailout comes, it won’t be easy to access credit or loans from foreign markets. The bailout will increase Ghana’s foreign reserves and may help mitigate some of the negative effects of the low foreign reserve challenges the country is currently facing.
This will therefore result in the increase of the country’s reserves to about 1.7 months of import cover in 2024 the report indicates.
From the report, Ghana is not the only country experiencing this impending economic crisis but several other African countries are in this catastrophic economic doom path.
However, some sub-Saharan African countries are expected to have a much lower import cover than Ghana. Countries like Zimbabwe are estimated to have 0.2 months of import cover, South Sudan 0.5 months of import cover, and Ethiopia 0.6 months of import cover.
Our international reserves are almost empty because of the challenges of the country and the leadership crisis.
Moving on, the choices that the country makes now will determine the future of our economy, and whether the country gets the $3 billion loan bailout from IMF or not will be another story for discussion.
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