Finance Minister, Mr. Seth Terkper has stated that the country is carefully observing emerging markets away from Europe and the United States for its upcoming bond issue as Britain exits from the European Union(EU).
According to him, with Ghana’s experience in the core matured markets, the exit of Britain from the EU will have an effect on the European and American bonds markets; hence it will be prudent to study other markets to maximize Ghana’s output.
“We are also watching the emerging markets. When we talk about emerging markets we are talking about the bonds markets involving bonds issued in Brazil, China, India and others. Those are the emerging markets,” he said.
Speaking to Bernard Avle on the Citi Breakfast Show, Mr. Terkper explained that the effect of the Brexit will have insignificant impact on the emerging markets.
“Ghana is on the peripheral of the emerging markets and so to come from the core markets which is the matured European and American markets to the emerging markets the impact of Brexit will be felt and is normally less significant in the peripheral markets”, he said.
He was of the opinion that, the exit of Britain is more important on how it will impact Ghana’s currency.
He stated that discussions are underway with the Bank of Ghana to assess the impact on Ghana’s major trading currencies such as the pound, euro and dollar.
“We have begun consultation with the Bank of Ghana long before the votes, to monitor the impact on commodity prices,” he added.
Pointing out some areas being monitored, Mr. Terkper stated that the ministry is carefully monitoring the price of gold on the world market to assess the effect in the short and medium term.
According to him, the exit has already shown some impact on the African continent, with the South African rand making some gains on Friday, June 24, 2016.
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By: Lawrence Segbefia/citibusinessnews.com/Ghana