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Government to sustain Cedi Recovery
Posted by admin on 13th July 2015

The Minister of Finance, Mr Seth Terkper, has stated that the recovery of the cedi against the dollar will be sustained, as offshore inflows arrive to boost foreign exchange supplies.

The recovery of the cedi against the US dollar in particular is expected to dampen speculation and boost more confidence in the economy.

The Finance Minister was upbeat that the local currency would head for the biggest gain against major trading currencies in the coming months.

Report from the market say, some foreign exchange speculators have projected that at this rate, the cedi could climb in value to as much as GHC 2.782 to one US dollar by the end of this month (July) as the Bank of Ghana increases more dollar supply in the system.

Mr Terkper said he was hopeful that increased dollar inflows from the almost a billion dollar Eurobond sale, a $1.8 billion cocoa syndication loan, and the resumption of almost $400 million aid from development partners would help sustain the gains by the Ghana cedi.

The gradual switch to gas in the production of electricity should also reduce pressure on the foreign exchange market and allow the central bank to rebuild its external reserves to a higher level than programmed by the end of year.