Finance Minister Dr. Mohammed Amin Adam has noted that the Ghana Cedi has experienced appreciation and maintained stability against the US dollar throughout 2024 compared to previous years.
During a monthly briefing held by the finance ministry on the state of the economy, Dr. Amin Adam highlighted that the exchange rate has significantly stabilized, with the rate of depreciation against the US dollar decreasing from a substantial 54.2% at the end of November 2022 to 27.8% by the end of December 2023.
The minister expressed confidence that the Cedi would strengthen further in the medium term following 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.
Addressing the current depreciation trend of the Cedi against the US dollar, Amin Adam attributed it to various factors including the strengthening of the US Dollar against major trading currencies, seasonal forex demand, elevated corporate institutional demand, payments to contractors and Independent Power Producers (IPPs), high Cedi liquidity, and speculation.
“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.”