Finance Minister Dr. Mohammed Amin Adam has expressed optimism about the stability of the Ghana cedi.
He is confident of reversing the cedi’s free fall against other major currencies, which has affected the prices of goods and services.
Dr. Amin Adam assured that the Ministry of Finance was working with the Bank of Ghana to implement measures to address the cedi’s depreciation.
He emphasized the progress of the cedi since 2023, asserting that the currency has exhibited stability against major currencies.
“But for recent pressure we see on the exchange rate movement, the exchange rate has been largely stabilized over some time with the depreciation of the cedi against the US dollar halving from 52.2% at the end of November to 27.3% at the end of December 2023.
“The cedi’s stability has continued into 2024 with cumulative depreciation of 14.2% as of 20th May 2024 compared to 20.7% recorded in the same period in 2023. So on that basis, we are safe to conclude that the cedi is still very strong. We expect the stability to improve into the medium term as we complete debt restructuring,” Dr. Amin Adam indicated.
The minister assured that there was enough forex supply in the system; hence, there was no need for the public to rush for dollars.
“There is enough forex supply on the market. There is no need to rush for dollars. We expect a total of US$2.32 billion before the end of the year to shore up reserves”.
Speaking at the monthly economic update in Accra on May 24, Dr Amin Adam reassured Ghanaians of the government’s commitment to curbing the cedi’s depreciation.
The Ghana cedi continues to lose ground to the major trading currencies this week, especially the US dollar.
Businesses have expressed their frustration over the current state of the cedi.
The cedi was trading against the dollar at GH₵ 11.98 on Monday, May 20.
However, it crossed GH₵ 15.24 at the close of business day on May 16 at the forex bureaus, which are now trading at GH₵ 14.75, resulting in a depreciation rate of close to 20% since the beginning of the year.