In a recent briefing on the economy, the Minister of Finance, Dr. Mohammed Amin Adam, expressed optimism about the stability of the Ghanaian Cedi. He assured that measures were being taken to strengthen the currency in the medium term.
Dr. Adam highlighted several factors contributing to the Cedi’s stability. Despite recent pressures, the exchange rate has been largely stabilized, with the Cedi’s depreciation against the US Dollar decreasing from 54.2% at the end of November 2022 to 27.8% at the end of December 2023. As of May 20, 2024, the cumulative depreciation stands at 14.2%, compared to 20.7% during the same period in 2023.
The Finance Minister emphasized ongoing efforts, including debt restructuring and fiscal consolidation, as key drivers for improving the Cedi’s stability. Additionally, the country’s reserves are expected to strengthen over the medium term.
Dr. Adam attributed recent fluctuations in the Cedi to several factors, including the strengthening of the US Dollar against major trading currencies, seasonal forex demand, elevated corporate institutional demand, payments to contractors, and speculation.
As Ghana continues its economic management strategies, the Finance Minister remains confident that the Cedi’s stability will improve, benefiting both the local economy and investors.
Source: 3news.com
