{"id":1257924,"date":"2022-11-25T10:46:12","date_gmt":"2022-11-25T10:46:12","guid":{"rendered":"https:\/\/www.ghanamma.com\/2022\/11\/25\/cedi-loses-53-8-of-its-value-as-govt-adds-gh%c2%a293bn-debt-in-2022-2\/"},"modified":"2022-11-25T10:46:12","modified_gmt":"2022-11-25T10:46:12","slug":"cedi-loses-53-8-of-its-value-as-govt-adds-gh%c2%a293bn-debt-in-2022-2","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2022\/11\/25\/cedi-loses-53-8-of-its-value-as-govt-adds-gh%c2%a293bn-debt-in-2022-2\/","title":{"rendered":"Cedi loses 53.8% of its value as govt adds GH\u00a293bn debt in 2022"},"content":{"rendered":"

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cedi<\/figcaption><\/figure>\n<\/div>\n

Ghana\u2019s Cedi has declined by 53.8% in value against major currencies, since the beginning of 2022, Finance Minister Ken Ofori-Atta has said.<\/p>\n

Presenting the 2023 Budget in Parliament on Thursday, Mr Ofori-Atta blamed the demand for foreign exchange as one of the reasons for the decline of the cedi.<\/p>\n

\u201cThe demand for foreign exchange to support our unbridled demand for imports undermines and weakens the value of the cedi. This contributed to the depreciation of the Cedi which has lost about 53.8% of its value since the beginning of this year, compared to the average 7% annual depreciation of the Cedi between 2017 and 2021.\u201d<\/p>\n

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Mr Ofori-Atta added that the Bank of Ghana will continue to monitor inflation developments and
respond appropriately to contain price pressures. He said Monetary Policy will focus on\u00a0using
the monetary policy rate to, among others, contain inflationary pressures.<\/p>\n

The Finance Minister also stated that the \u201cexternal sector performance in the outlook will depend largely on\u00a0the quick resolution of the Russia\u2013Ukraine war and the outcome of recession fears in\u00a0advanced economies. The thrust of the external sector will focus on rebuilding external\u00a0buffers enough to cover at least three and half months of imports of goods and services\u00a0to cushion the economy against adverse external shocks. This will be underpinned by,\u00a0among others, bilateral support, and strong remittance inflows.\u201d<\/p>\n

Mr Ofori-Atta also revealed that Ghana\u2019s debt stock increased drastically to GH\u00a293 billion this year alone due to the depreciation of the cedi.<\/p>\n

\u201cMr. Speaker, provisional debt data as at the end of September 2022 shows a significant\u00a0increase in Ghana\u2019s public debt largely due to exogenous factors.\u00a0The end\u2013September 2022 provisional figures indicate that total gross public debt\u00a0stood at GH\u00a2467,371.31 million (US$48,871.34 million), representing approximately\u00a075.9 percent of GDP.\u201d<\/p>\n

\u201cThe domestic debt component is GH\u00a2195,657.60 million, which is 31.79 percent\u00a0of GDP, whilst external debt is GH\u00a2271,713.71 million, representing 44.15 percent of\u00a0GDP. The increase in the domestic debt is largely on account of rising interest costs.\u00a0Domestic debt as a share of total public debt reduced from 51.6 percent in 2021 to\u00a041.9 percent as at end of September 2022.\u00a0Mr. Speaker, the external debt as a percentage of the total debt stock is 58.1\u00a0percent as at end of September 2022. The sharp growth in the external debt stock is\u00a0largely driven by the depreciation of the local currency. The depreciation of the Ghana\u00a0cedi added\u00a0GH\u00a293,855.15 million to the external debt stock.\u201d<\/p>\n

2023 Budget: Ofori-Atta sends strong message to govt officials over use\u2026<\/strong><\/p>\n

Full text: Govt\u2019s 2023 Budget statement delivered by Finance Minister<\/strong><\/p>\n

2023 Budget: VAT rate up by 2.5%<\/strong><\/p>\n

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