Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has acknowledged the potential implications of the anti-LGBTQ+ bill on foreign exchange flows.
He stated that the Ministry of Finance has provided insights into how the bill could impact the economy, including the potential loss of financial support from international institutions.
During the 117th Monetary Policy Committee (MPC) press conference in Accra, Dr. Addison noted that the Ministry of Finance has highlighted the possible loss of resources from institutions like the World Bank due to the anti-LGBTQ+ bill. He assured that the Bank of Ghana is aware of these implications and their potential impact on foreign exchange flows.
Dr. Addison emphasized that, based on current assessments, significant changes in foreign exchange forecasts for 2024 are not expected. He expressed confidence that the Ghanaian Cedi will remain relatively stable despite concerns over potential disruptions caused by the bill.
The Ministry of Finance has outlined the consequences of President Akufo-Addo assenting to the anti-LGBTQ+ bill, indicating potential losses of US$3.8 billion in World Bank financing over the next five to six years. This loss could affect Ghana’s foreign exchange reserves and exchange rate stability, as the inflows were intended to bolster the country’s reserve position.
The Ministry further detailed the potential impacts, including the suspension of budget support, ongoing negotiations for financial assistance, and the disbursement of funds for existing projects. It cautioned that failing to address the financing gap created by the loss of international support could undermine the government’s ability to achieve its targets in the 2024 budget and affect its IMF-ECF Programme.
The Promotion of Human Sexual Rights and Ghanaian Family Values Bill, which was passed by Parliament on February 28, has raised concerns both domestically and internationally regarding its potential effects on human rights and foreign aid.
