Mr. Chairman, in first half of 2009 major economic challenges confronted businesses, investors, individuals and policymakers. The rate of inflation which began rising in the last quarter of 2008 increased consistently in the first six months peaking at 20.7 percent in June, the highest level in over four years.
Between January and June, the cedi depreciated by 17.5 percent against our main reserve currency, the US dollar. Gross international reserves declined to about 1.9 months of imports cover by June 2009. The deterioration in theses indices were the results of both global and domestic developments. Dramatic increases in energy prices, combined with high prices of imported foods, contributed to increases in inflation.