Get alternative economic plan; IMF deal might fail – Economist to Government

Associate Professor with the University of Ghana Business School (UGBS), Elikplimi Komla Agbloyor has advised the government to as a matter of urgency put in place an alternative plan in case the IMF deal does not go through. Commenting on President Akufo-Addo’s address to the nation on the Economy, Mr. Agbloyor indicated that the expected IMF cash may not be enough hence the need to have what he termed ‘Plan B’. [adrotate group="2"]“Hopefully, if we should get an IMF deal by the end of the year then we will see some dollar inflows into the economy, which we are expecting about 3 billion dollars. That should slow down the depreciation of the cedi. “One of the causes of increases in the cost of living or inflation is the depreciation of the cedi. So if we are able to secure an arrangement with the IMF then that will help in reducing the cost of living. It should also make a recession less likely or more bearable,” Mr. Agbloyor explained on the Morning Starr with Francis Abban Tuesday, November 1, 2022. He continued: “However, what I was expecting the President to do is, we should have a plan B. For example, in case there is a delay in securing a deal with the IMF or in case the deal doesn’t even go through which is a possibility, do we have a plan B? I am saying this because the IMF in itself will help but I don’t think it is sufficient.” He cited Egypt as an example where even after getting an IMF deal last week have to still solicit support from the Gulf countries. According to him, Egypt got support in excess of five billion dollars to shore up their foreign exchange transactions. “So I think apart from the deal with the IMF the government should be making plans for other options to increase our foreign exchange reserve. Especially in the short term,” the associate professor advised.