Ghana’s government will pump $2-billion into the economy to “rescue the cedi” currency, the presidency wrote on Twitter on Wednesday, adding that it will cut political appointees’ salaries by up to 30% as part of measures to ease its financial problems.
The West African country is facing rampant inflation, a depreciating local currency and a heavy debt burden that has dented investor confidence and could build up into a debt crisis. The cedi has weakened by about 20% against the dollar this year, exacerbating its problems.
The announcement from President Nana Akufo-Addo follows the central bank’s decision on Monday to hike its main lending rate by 250 basis points to 17%, the largest increase in Ghana’s history.
Ghana was long seen as a rising star among Africa’s emerging market economies, but underwhelming oil revenues and supply chain disruptions amid the Covid-19 pandemic have dampened expectations.
The presidency also wrote on Twitter that
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