The government has revealed why the value of the Ghana cedi has been weakening in recent times.
Engaging the press today, Minister for Finance, Dr. Mohammed Amin Adam, provided three reasons behind this unsatisfactory development that poses a threat to businesses in the country.
He noted that the strengthening of the dollar on the international market, seasonal demand for forex and the recent payment of contractors worth over GHC40 billion has caused the value of the cedi to fall.
The Ghanaian cedi has depreciated by 14.2% as of May 2024, according to Finance Minister Dr. Mohammed Awal Amin.
Despite this depreciation, Dr. Amin emphasized that the currency remains strong during an engagement with the media on the current state of the media on Friday.
Dr. Amin highlighted that the cedi’s depreciation against the US dollar has decreased from 54% in November 2022 to 27.8% by the end of December 2023.
He noted that the cedi’s stability has persisted into 2024, with the cumulative depreciation reaching 14.2% as of May 20, 2024, compared to 20.7% recorded in the same period in 2023.
There have been numerous concerns from stakeholders in the financial sector over the weakening of the local currency.
The Chamber of Petroleum Consumers (COPEC) has alerted the public to anticipate higher fuel prices at the pumps in the coming weeks due to the depreciation of the cedi.
This warning follows increases in fuel prices by some oil marketing companies, despite earlier projections that prices would decline from mid-May. The companies have attributed the price hikes to uncertainties in the exchange rate market.
As of May 22, at a Forex bureau located in Accra, the dollar was purchased at a rate of GH15.00 and sold at GH15.30.