In a recent statement, the Ministry of Finance has highlighted the sustained stability of the Ghanaian Cedi against major currencies since 2023.
Finance Minister Dr. Mohammed Amin Adam shared this promising news during the Ministry’s Monthly briefing held in Accra on Tuesday, March 26, 2024.
Dr. Adam presented encouraging statistics indicating a significant improvement in the Cedi’s performance.
He stated that from February to December 2023, the Cedi only depreciated by 9.1% against the US Dollar, marking a substantial enhancement compared to the 29.8% depreciation observed in the same period in 2022.
The Finance Minister emphasized that this commendable reduction showcased remarkable stability achieved in the latter part of 2023, a trend that has extended into 2024. As of March 20, 2024, the Cedi had experienced a cumulative depreciation of only 6.8% against the US Dollar, compared to the 22.1% depreciation reported during the corresponding period in 2023.
Despite recent exchange rate fluctuations attributed to the US Dollar’s strengthened position against major currencies, Dr. Amin Adam underscored ongoing pressures on the Cedi. Factors contributing to these fluctuations include delays in the disbursement of the second tranche of the cocoa loan and the World Bank DPO1, alongside payments for energy and corporate sectors.
Despite these challenges, Dr. Adam expressed confidence in upcoming disbursements from international partners, such as the IMF, the World Bank, and the African Development Bank. He anticipates a total disbursement of USD 1.2 billion before the year’s end, aiming to further stabilize the currency.
In conclusion, the Finance Minister encouraged the Bank of Ghana to sustain its interventions to uphold the Cedi’s stability amidst evolving economic conditions and external pressures.
By Vincent Kubi