Ghana's reserves being nearly depleted, according to Joe Jackson, Director of Business Operations at Dalex Finance, is a terrible omen.
Ghana's net international reserves are anticipated to reach three weeks of import coverage (0.8 months) by the end of 2023, according to the Sub-Saharan Africa Regional Economic Outlook Report from the International Monetary Fund.
In Sub-Saharan Africa, only Zimbabwe (0.2 months), South Sudan (0.5 months), and Ethiopia (0.6 months) are anticipated to have lower import coverage than Ghana.
On Eyewitness News with Umaru Sanda Amadu, Joe Jackson commented on the situation and emphasized, "We will have no import cover at all by the end of the year. It demonstrates how bad the current economic crisis is and is not at all a favorable sign. It has been building for a while. I tweeted to let people know that things are becoming bad.
If the government fails to win the IMF bailout in May, the country's economy will completely be out of control, according to the director of business operations at Dalex Finance.
He said, "At this point, I cannot imagine what will happen if we don't get the IMF deal. In order to help the government secure the arrangement, Mr. Jackson pleaded with the labor unions and other parties fighting the Domestic Debt Exchange Program to join forces.
"We must go to the negotiating table and take all necessary steps to reach an agreement; otherwise, we will experience severe foreign currency shortages. Due to our inability to import fuel, we will be dealing with Dumsor. We won't be able to import medications, tomatoes, or chicken, and there will be a gasoline scarcity. This is a plea to the labor movement, pensioners, and all other interested parties to ensure that we reach an IMF agreement before the end of May.
"Let's sit down and acknowledge how serious the situation is. Those who are fighting the DDEP should join the team. We are caught in a very difficult situation. Even though we think this is unfair, the nation needs their money. It's unfortunate that someone must make a sacrifice. The Director of Business Operations at Dalex Finance said that we must unite as a nation to address this problem.
He counseled the government to exercise leadership by reducing its spending and number of appointments. In order to earn the trust of the pensioners, Mr. Jackson further advised the administration to be transparent with them about the economic circumstances the nation is currently experiencing.
"The government must demonstrate leadership by reducing spending, the number of appointments, and the amount borrowed for this year's budget in order to speak with authority to pensioners and other stakeholders about where we are and what needs to be done to avoid disaster. Let's keep in mind that we are experiencing a crisis and should continue to pray for the triumph of reason, he advised.
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