Ghanaians should celebrate Ofori-Atta for current economic recovery trajectory – Dr Domfe

Dr. George Domfe is a development economist. He works as a Senior Research Fellow at the Centre for Social Policy Studies (CSPS) at the University of Ghana. He believes Ghanaians should celebrate former finance minister Ken Ofori-Atta.

Dr. Domfe stated that without Ofori-Atta's Debt Exchange Program (DDEP), the economy would not be performing well today. He praised the debt restructuring program for reducing foreign currency outflows significantly. This helped honor external interest payments and amortization.

He emphasized that Ghanaians should recognize Ofori-Atta’s efforts to secure the future of the economy. The International Monetary Fund (IMF) program has also boosted Bank of Ghana reserves, allowing intervention in the forex market.

Dr. Domfe explained that Ghana's current exchange rate system is a Managed Floating Exchange Rate Regime. This allows the central bank to intervene periodically to protect the local currency, which has improved due to increased reserves from Ofori-Atta's policies.

He noted that while previous administrations could have acted similarly, conditions were not favorable then. Dr. Ernest Addison mentioned he could lower the cedi/dollar rate but deemed it unnecessary at that time.

Currently, demand for foreign currencies has decreased due to several factors: falling global crude prices, government delays in contractor payments, and non-payment of statutory obligations. Additionally, inflows from gold exports and remittances have increased foreign currency supply.

Dr. Domfe concluded that it is no surprise to see the cedi performing well with significant Bank of Ghana interventions totaling $1 billion in two months.

Meanwhile, the Special Prosecutor announced plans for an INTERPOL red notice against Ken Ofori-Atta, which could lead to international arrest and extradition.