General News of Friday, 18 July 2014

Source: citifmonline

Gov’t bound to make mistakes – Seth Terkper

Finance Minister, Seth Terkper has said government is imperfect and will make mistakes in the process of reviving the ailing economy.

“Government is not perfect, and government will not get it right, so government makes mistakes and when we make mistakes, I think we have to correct them,” he said.

Citing the Forex rules instituted by the Bank of Ghana to halt the free fall of the cedi, Mr. Terkper said the effects were “unintended.”

According to him, despite the economic challenges and the continuous depreciation of the Ghana cedi, the country is still the best destination for investment and other businesses.

The cedi has depreciated in value by 27% since January 2014 against major trading currencies.

The central bank in February introduced certain measures to stabilize the cedi by revising the rules governing the operations of Foreign Exchange Accounts (FEA) and Foreign Currency Accounts (FCA).

Months after, however, not much improvement has been recorded as the cedi continues to depreciate.

The Forex rules were later revised after several calls on the central bank to do so as the cost of businesses kept rising.

Speaking at a breakfast meeting with Citi FM and Radio Gold, the sector Minister disclosed that the government is building capacity in revenue modeling and estimation.

The sector Minister said other international organizations such as the United Nations Development Programme (UNDP) “have been helping us to improve.”