Ghana to Use Gold to Buy Oil Instead of U.S. Dollars to Address Debt Distress

There is immense pressure on the Ghanaian government to turn things around, with inflation hitting a record 40 percent in October. Traders closed their shops last month to protest the rising cost of goods and services as citizens decry the high cost of living.

Market confidence is very low as the West African country negotiates with the International Monetary Fund for a $3 billion deal to help restructure the economy. Presenting the 2023 budget in parliament Thursday, Finance Minister Ken Ofori-Atta, who some governing party lawmakers have already called for the president to fire, said depreciation of the cedi continues to be a huge problem as the government strives to address the country's current challenges.

"The demand for foreign exchange to support our unbridled demand for imports undermines and weakens the value of the cedi," he said."This contributed to the depreciation of the cedi, which has lost about 53.8 percent of its value since the beginning of the year.

As part of the measures to get the economy back in shape, Ofori-Atta announced a freeze on new tax waivers for foreign companies, a review of tax exemptions for mining, oil and gas companies and a reduction in the fuel allocation to government appointees.Get the latest in African news delivered straight to your inbox

Source: News Formal (newsformal.com)

Democracy will land there very quickly.

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