The Minister of Finance, Dr. Mohammed Amin Adam, announced that the depreciation of the Cedi has been significantly stabilized from November 2022 to December 2023 and continues to appreciate modestly against the dollar in 2024.
During his monthly economic briefing, the minister reported that the exchange rate has largely stabilized, with the depreciation of the Cedi against the US Dollar decreasing from 54.2% at the end of November 2022 to 27.8% by the end of December 2023.
Additionally, he expressed optimism that the Cedi is expected to strengthen in the medium term following the completion of the domestic debt exchange programme.
“But for recent pressures we are seeing on exchange rate movements, the exchange rate has been largely stabilised with the depreciation of the cedi against the US Dollar halving from 54.2% at the end of Nov 2022 to 27.8% at the end of Dec 2023.
“The Cedi’s stability has continued into 2024, with a cumulative depreciation of 14.2% as of 20th May 2024, compared to 20.7% recorded in the same period in 2023. We expect the cedi’s stability to improve into the medium-term as we complete debt restructuring, make more progress on fiscal consolidation, and improve our reserves over the medium-term.”
He further addressed the current pressures in the Cedi which he attributed to the “strengthening of the US Dollar against major trading currencies”
“The recent pressures we are observing on the cedi is largely on the back of the strengthening of the US Dollar against major trading currencies, seasonal forex demand including elevated demand from corporate institutions, payment to contractors and to IPPs, high Cedi liquidity and speculation.”
Dr. Amin Adam enumerated a number of measures including enhancing revenue mobilisation, approval of World Bank loans, among others which he said the government is working on to further improve the strength of Cedi against some major trading currencies.
The weakening of the Cedi has left some trader groups including GUTA and Organised Labour calling for urgent measures to halt the depreciation.
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