The Finance Minister, Mohammed Amin Adam has reassured the public of the cedi's resilience despite recent depreciation trends.
Addressing concerns during the Ministry’s monthly economic update to the citizenry, he emphasised that the cedi has shown considerable stability in 2024.
“The Cedi’s stability has continued into 2024 with a cumulative depreciation of 14.2% [from January] as of May 20, compared to 20.7% recorded in the same period in 2023.
“People may see the cedi depreciating fast recently, but if you compare the rate of depreciation this year which has been 14.2% from January to May to that of the same period last year, this year’s rate is better.
“So on that comparative note, we are safe to conclude that the cedi is still strong. It is very strong," he said on Friday.
Ghana's currency has experienced a very sharp decline in recent times. As of May 16, local currency was trading between GH₵14.50 to GH₵15 to the dollar.
Many currency analyst have predicted that the cedi will continue to lose grounds to the major trading currencies.
Nonetheless, Minister Amin Adam expressed optimism about the Cedi’s future performance.
He anticipates improvements as the country progresses with its debt restructuring, fiscal consolidation, and reserves enhancement efforts.
“We expect the cedi to improve into the medium term as we complete the debt restructuring, make progress on fiscal consolidation, and improve on our reserves,” he explained.
The Minister also attributed the recent pressure to the strengthening of the US dollar against major global currencies, including Ghana's cedi.
“The recent pressure on the cedi are largely a result of the strengthening of the US dollar against major trading currencies across the world, including Ghana’s cedi. Therefore, we expect that as the US currency moderates in its strength, the effects will be felt in our currency.”
Credit: Ama Cromwell