Finance minister Dr. Mohammed Amin Adam has mentioned that the Ghana Cedi has appreciated and remained stable against the US dollar in 2024 compared to recent years.
Speaking at a monthly briefing by the finance ministry on the economy, Dr. Amin Adam said that the exchange rate has largely stabilized, with depreciation against the US dollar decreasing from a staggering 54.2% at the end of November 2022 to 27.8% at the end of December 2023.
The minister believes that the Cedi will however strengthen in the medium-term after the completion of the Domestic Debt Exchange Programme (DDEP).
“But for recent pressures we are seeing on exchange rate movements, the exchange rate has been largely stabilized with the depreciation of the Cedi against the US Dollar halving from 54.2% at the end of November 2022 to 27.8% at the end of December 2023.
“The Cedi's stability has continued into 2024, with a cumulative depreciation of 14.2% as of May 20, 2024, compared to 20.7% recorded in the same period in 2023. We expect the Cedi's stability to improve in the medium term as we complete debt restructuring, make more progress on fiscal consolidation, and improve our reserves over the medium term,” the finance minister stated.
Touching on the current depreciation of the Cedi against the US dollar, Amin Adam said it is a result of the US dollar strengthening its position against major trading currencies.
“The recent pressures we are observing on the Cedi are largely due to the strengthening of the US Dollar against major trading currencies, seasonal forex demand including elevated demand from corporate institutions, payments to contractors and IPPs, high Cedi liquidity, and speculation.”
EAN/MA
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