Cedi depreciation figures declared by government for 2023 inaccurate – Finance expert

Finance expert Joe Jackson has disputed figures declared by the government on the depreciation of the cedi against major trading currencies in 2023.

Finance Minister Dr. Mohammed Amin Adam, when presenting an update on the economy at a press briefing on May 24, 2024, said the Cedi depreciation against the US dollar decreased from a staggering 54.2% at the end of November 2022 to 27.8% at the end of December 2023.

He added that the Cedi is expected to further 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.

Reacting to the figures presented by the minister, Joe Jackson argued that the depreciation numbers are inaccurate as he believes they do not align with data available online, particularly with exchange rates figures provided by the Bank of Ghana.

“The minister may have gotten his figures a little wrong. I don’t think that in May 2023 it was that kind of figure.

“If you go online and you look at the Bank of Ghana rate and other quoted rates; anybody can go to www.xe.com, put the US dollar to cedi rate, you will see that today’s rate is quoted as 14.55 coming from the central bank,” the finance expert said.

He continued, “On May 24, 2024, the quoted rate there is 10.75. Today, the quoted rate is 14.55, the depreciation is around 24%.”

Touching on the assertions that the cedi will strengthen in the medium-term, the Dalex Finance acting CEO said it must first translate into the pockets of the average Ghanaian.

"...As for the cedis being strong, he can’t say that. We feel it in our pockets, we feel it when we buy clothes… you feel it everywhere,” Jackson argued.

MA