Business in Ghana

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Posts Tagged ‘Foreign Currency Reserves’

Waiting To Analyse The Economy

Posted by Business in Ghana on September 26, 2011

By Sydney Casely-Hayford,

Should we follow in Nigeria’s wake and hold part of our reserves currency in Chinese Yuan?  The question has come up in business news more than once in recent weeks.  I first commented on this on a Joy Business Trends program and I said an emphatic yes!  Not just because Nigeria has done so, but also because they are ahead of us in analyzing and making the decision.

Deciding what currency to hold in foreign reserves is not a very complicated analysis when you have all the data.  When asked, other analysts and ministers in Government cautioned that we should take our time, tread gently and make the decision hesitatingly.  As they claim, we are a small country with too much to lose, we must take care and ensure that we make the right decision.  Then one day this week on BBC World Service the African proverb was, “people who have nothing, fight over nothing”.

Last month the World Bank released project evolution figures on Ghana’s portfolio.  A clear representation of where we are.  $1.5 billion in awarded contracts and we have only performed 23% of the work required to release funds.  Facilities are about to run out for key interventions, which we are complaining about.  Roads, water, education, sanitation. Read the rest of this entry »

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