Minister for Finance, Ken Ofori-Atta has hinted that the perennial depreciation of the Ghana cedi against its major trading partners will be fixed by the end of 2022.
Delivering a speech at the Association of Ghana Industries (AGI) forum in Accra, Mr Ken Ofori-Atta noted that, his outfit, in collaboration with the Bank of Ghana (BoG), is working around the clock to address the continuous cedi depreciation.
He revealed that the BoG, as part of measures to stabilise the local currency, has intensified efforts at addressing speculation, which is fuelling the dwindling local currency.
Again, the initiative by the central bank to crack down on black market foreign exchange dealers, he says, will help with the cedi’s stabilisation.
Expressing his concern about the rapid depreciation of the local currency, he said “as the Minister of Finance, no one needs to tell me the ravages of the cedi depreciation which has become an albatross on the neck of our local industries and the high cost of living for all citizens.”
Ken Ofori-Atta also called for an all-hands-on-deck approach to dealing with the cedi depreciation.
He encouraged the public to play their part in creating a healthy macroeconomic environment capable of meeting the essential needs of Ghanaians.
Background
The cedi’s depreciation has rapidly deteriorated since the beginning of the year.
According to reports, the demand for the dollar keeps surging, as there are very few dollars in circulation.
At the beginning of October 2022, the local currency was trading at GH¢11.2 against the dollar.
During the same period under review, the persisting demand on the foreign currency pushed the cedi to GH¢12.45.
As of Friday, October 14, 2022, the Ghana cedi had lost 9.03% of its value against the US dollar.
Ghana’s currency further depreciated by 3.3% on Monday, October 17. The cedi was selling at GH¢15.20 to one US dollar.
However, on October 26, 2022, the cedi began to witness an appreciation.
According to financial analysts, the cedi began to appreciate due to the inflows of the first tranche of the cocoa syndicated loan and the expected staff-level agreement between the government and the International Monetary Fund by December 2022.
Source: The Independent Ghana