The Ministry of Finance has emphasized the progress of the cedi since 2023, asserting that the currency has exhibited stability against major currencies.
Finance Minister Dr. Mohammed Amin Adam highlighted this achievement during the Ministry’s Monthly briefing in Accra on Tuesday, March 26, 2024.
Dr. Adam pointed out that from February to December 2023, the cedi’s depreciation against the US Dollar was only 9.1%, a notable improvement compared to the 29.8% depreciation recorded during the same period in 2022.
According to him, this significant reduction indicates a considerable level of stability achieved in the latter part of 2023.
Dr. Amin Adam emphasized that the cedi’s steadiness has persisted into 2024, with a cumulative depreciation of only 6.8% as of March 20, 2024, compared to the 22.1% seen in the corresponding period of 2023.
“The Cedi has been largely stabilized since early 2023 against the major trading currencies, even though we are seeing some pressures on the Cedi in recent times. The cedi cumulatively depreciated against the US Dollar by 27.8% at the end of December 2023 down from the depreciation rate of 30.0% at the end of December 2022 and 50% at the end of November 2022;
“February to December 2023 depreciation against the USD was only by 9.1% compared to 29.8% over the same period in 2022, showing significant stabilization over the last 11 months of 2023; The high depreciation of the cedi against the US Dollar in January 2023 (20.6%) was largely on the back of the realignment of the foreign exchange market between the official and the forex market.
“The Cedi’s stability has continued into 2024, with a cumulative depreciation of 6.8% as of 20th March 2024, compared to 22.1% recorded in the same period in 2023. We encourage the Bank of Ghana to continue with its intervention to sustain the stability of the currency.”
He acknowledged the recent exchange rate fluctuations due to the US dollar’s fortification against major currencies.
“However, the exchange rate has witnessed some pressures in the last few weeks due mainly to the strengthening of the US Dollar against major trading currencies.”
The finance minister noted that the second tranche of the cocoa loan and the World Bank DPO1’s delayed disbursement have exerted additional strain on the cedi.
“Additionally, payments made for energy and corporate sectors, compounded by the delays with the disbursement of the 2nd tranche of the cocoa loan and the World Bank DPO1 have placed further pressures on the cedi. According to the Bank of Ghana, these pressures have been mitigated somewhat by the continued inflows from remittances and mining companies, and from the domestic gold purchase programme.”
Dr. Amin Adam expressed optimism about the expected disbursements from international partners to further stabilize the cedi.
“To further stabilise the currency, we are expecting a total disbursement of about US$1.2 billion from our Development Partners namely the IMF, the World Bank, and the African Development Bank before the end of 2024.”
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