No need ‘to panic or be rushing to put pressure on the cedi’ – Ofori-Atta

Finance Minister Ken Ofori-Atta has cautioned that there is no need to unnecessarily acquire dollars because doing so will put pressure on the Ghana Cedi. He maintains, however, that despite the headwinds being faced currently, the economy is in good shape. Speaking to a journalist of Accra-based Asaase Radio from Washington where he is leading a team engaging the International Monetary Fund (IMF), he described the depreciation rate as ‘perplexing.’ “It is quite perplexing to see where it is going,” he said about the continued depreciation of the cedi. He ascribed the thirst for dollars to the October season when people will be looking for dollars in order to undertake imports for Christmas. “Of course, typically in October, people are importing for Christmas and maybe there is a rush for that. “The support we are getting from countries like Germany, France etc. we are confident that we will get the resources needed. So, we really would want people to know, not to panic or be rushing to put pressure on the currency. I think it is unnecessary and we are in good shape,” he added. He said the government was upbeat that a deal will be reached with the International Monetary Fund, IMF later this year to allow for the disbursement of funds in early 2023. “My expectation is that once we also conclude the fund, that would lead to the Fund’s disbursement early next year.” The Cedi has recently been classified by Bloomberg as the worst-performing currency against the US Dollar. Currently, the Cedi is trading at around GH¢13 – GH¢14 to a dollar at some forex bureaus. The depreciation rate is a contributory factor for the ongoing shop closures ordered by the Ghana Union of Traders Association (GUTA). According to the group, the fast depreciation of the Cedi is eroding their profits and also increasing the cost of doing business.

Finance Minister Ken Ofori-Atta has cautioned that there is no need to unnecessarily acquire dollars because doing so will put pressure on the Ghana Cedi. He maintains, however, that despite the headwinds being faced currently, the economy is in good shape. Speaking to a journalist of Accra-based Asaase Radio from Washington where he is leading a team engaging the International Monetary Fund (IMF), he described the depreciation rate as ‘perplexing.’ “It is quite perplexing to see where it is going,” he said about the continued depreciation of the cedi. He ascribed the thirst for dollars to the October season when people will be looking for dollars in order to undertake imports for Christmas. “Of course, typically in October, people are importing for Christmas and maybe there is a rush for that. “The support we are getting from countries like Germany, France etc. we are confident that we will get the resources needed. So, we really would want people to know, not to panic or be rushing to put pressure on the currency. I think it is unnecessary and we are in good shape,” he added. He said the government was upbeat that a deal will be reached with the International Monetary Fund, IMF later this year to allow for the disbursement of funds in early 2023. “My expectation is that once we also conclude the fund, that would lead to the Fund’s disbursement early next year.” The Cedi has recently been classified by Bloomberg as the worst-performing currency against the US Dollar. Currently, the Cedi is trading at around GH¢13 – GH¢14 to a dollar at some forex bureaus. The depreciation rate is a contributory factor for the ongoing shop closures ordered by the Ghana Union of Traders Association (GUTA). According to the group, the fast depreciation of the Cedi is eroding their profits and also increasing the cost of doing business. WATCH: Don’t panic over cedi depreciation- Ken Ofori-Atta tells Ghanaians #AsaaseNews pic.twitter.com/SeemDpmfnl— Asaase 99.5 (@asaaseradio995) October 20, 2022 SARA/PEN