Ghana’s central bank to hold emergency meeting over economic turmoil

The Bank of Ghana’s monetary policy committee says it will hold an emergency meeting on Wednesday.

In a statement, the country’s central bank explained that the meeting would be an avenue to review recent economic developments.

“The monetary policy committee (MPC) of the Bank of Ghana will hold an emergency meeting on Wednesday, 17th August 2022 to review recent developments in the economy,” the statement reads.

“The meeting will conclude with an announcement of the decisions of the committee.”

The MPC committee usually meets every two months and the next meeting was meant to be held from September 20 to 23.

Some of the issues expected to be discussed at the meeting include the continued depreciation of the cedi against the US dollar and the country’s rising inflation.

Last month, a delegation from the International Monetary Fund (IMF) visited Ghana to begin discussions on a possible support programme.

The country had decided to hold formal engagements with the IMF after its citizens took to the streets to protest over spiralling inflation and other economic difficulties.

Ghana had previously refused to seek IMF support.

At the end of the meeting, the IMF expressed readiness to support Ghana with financial bailout.

“Ghana is facing a challenging economic and social situation amid an increasingly difficult global environment. The fiscal and debt situation has severely worsened following the COVID-19 pandemic,” IMF had said in a statement.

“At the same time, investors’ concerns have triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs.

“In addition, the global economic shock caused by the war in Ukraine is hitting Ghana at a time when the country is still recovering from the Covid-19 pandemic shock and with limited room for maneuver.

“These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.

“The IMF team held initial discussions on a comprehensive reform package to restore macroeconomic stability and anchor debt sustainability.

“We reaffirm our commitment to support Ghana at this difficult time, consistent with the IMF’s policies.”