The Head of Africa Financial Analysis at Customary Financial institution, Qureishi Jibran, is urging the Authorities of Ghana to broaden entry to its bond market and cut back its heavy reliance on treasury payments financing.
In response to him, the present weakening of the greenback presents a possibility for the nation to restructure its financing technique and strengthen its financial resilience.
Talking on the 2025 Stanbic Financial institution Financial Discussion board on the Mid-Yr Funds Evaluate, Mr. Jibran defined that Ghana stands to profit if it capitalises on the present international macroeconomic setting by shifting to extra sustainable long-term market devices.
“A weaker greenback in all probability could be optimistic for markets which have liquid bonds and liquid international trade markets. And I believe that is why it is essential and paramount for the Ghanaian authorities to capitalise now and make sure that they open up their bond market and cut back the burden on treasury payments financing,” he mentioned.
He identified that whereas the greenback is dropping momentum, this could not encourage complacency.
He careworn the necessity for Ghana to organize for potential shifts within the international financial system that might reverse the present development.
“At a time when the greenback is clearly dropping a few of its shine, that may very well be an excellent alternative for them to capitalise,” he added.
Mr. Jibran additionally raised considerations about the specter of a worldwide recession, warning that such an occasion would have severe implications for economies like Ghana.
“We’re seeing, as I mentioned, a little bit of a fading of U.S. exceptionalism, which is now ensuing within the weaker greenback. But when there is a international recession – even when that coincides maybe with a weaker greenback right here and there – which traditionally doesn’t occur, the greenback index, together with different secure haven property, will rally.”
He warned that no African nation could be insulated from the results of a worldwide downturn.
“I do not suppose anybody, whether or not it is Ghana, Kenya, Egypt, Angola or Uganda, would or ought to be capable to rejoice a worldwide recession, as a result of we’ll get caught in that crossfire, not directly or straight, from a commerce standpoint, from a requirement standpoint, and likewise from a monetary market standpoint finally,” he concluded.
The decision to deepen the home bond market comes at a time when Ghana is beneath stress to handle its debt extra sustainably.
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