{"id":244477,"date":"2016-08-31T09:38:44","date_gmt":"2016-08-31T09:38:44","guid":{"rendered":"http:\/\/citifmonline.com\/?p=244477"},"modified":"2016-08-31T09:38:44","modified_gmt":"2016-08-31T09:38:44","slug":"dollar-denominated-bonds-to-stabilize-cedi-economist","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/?p=244477","title":{"rendered":"Dollar denominated bonds to stabilize cedi \u2013 Economist"},"content":{"rendered":"

Economist, Dr. Lord Mensah says government\u2019s dollar denominated bonds to be issued next month, will help stabilize the cedi.<\/p>\n

[contextly_sidebar id=”ua711fIhgqNyyh7gJjSSt1usFO0Q8wur”]A revised calendar on government\u2019s borrowing from August to December this year, shows that government will issue a total of 25.2 billion cedis<\/a><\/span><\/strong> for the period to settle forecasted maturing debts.<\/p>\n

Of the amount, a 5 year 1 billion cedis bond or its equivalent in dollars, will be issued next month.<\/p>\n

Dr. Lord Mensah believes the decision could not have come at a better time as there is more demand for the dollar especially within this period.<\/p>\n

\u201cI think it\u2019s a good idea looking at the time that we are considering going to the international market if we are purposely going to borrow to shore up our currency. In the end, money borrowed cannot be kept in government accounts thinking that they have nothing to do but then just to cushion the cedi,\u201d he told Citi Business News<\/strong>.<\/p>\n

Dr. Mensah however cautioned that government must invest the proceeds in economic ventures in order to reap the full objectives of stemming the cedi from depreciating against major trading currencies.<\/p>\n

\u201cEvery single currency that is being borrowed should serve a purpose so at the end of the day when it comes to paying back, we do not struggle,\u201d he cautioned.<\/p>\n

\u201cIf we do not have any reason to borrow, it\u2019s not about just going on a borrowing spree. I think that anybody that goes to borrow has a purpose for that and that is indicated in the prospectus,\u201d he further remarked.<\/p>\n

Some have argued that the 25.3 billion cedis to be borrowed is rather on the high side as it increases government\u2019s burden on reducing the country\u2019s debt to GDP ratio.<\/p>\n

Though Dr. Lord Mensah admits that the development is worrying, government has no option than to go ahead and issue the bonds to meet its need for funds.<\/p>\n

According to him, the balance of 1.4 billion cedis in its issuance and settlement is even less compared to the 1.8 billion cedis Finance Minister, Seth Terkper sought from Parliament during the mid year review of this year\u2019s budget in July.<\/p>\n

–<\/p>\n

By: Pius Amihere Eduku\/citibusinessnews.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":"

Economist, Dr. Lord Mensah says government\u2019s dollar denominated bonds to be issued next month, will help stabilize the cedi. [contextly_sidebar id=”ua711fIhgqNyyh7gJjSSt1usFO0Q8wur”]A revised calendar on government\u2019s borrowing from August to December this year, shows that government will issue a total of 25.2 billion cedis for the period to settle forecasted maturing debts. Of the amount, a […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":[],"footnotes":""},"categories":[121,32,171,11],"tags":[],"class_list":["post-244477","post","type-post","status-publish","format-standard","hentry","category-banking-and-finance","category-business","category-local-economy","category-top-stories"],"_links":{"self":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/244477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=244477"}],"version-history":[{"count":0,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/244477\/revisions"}],"wp:attachment":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=244477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=244477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=244477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}