Finance expert, Joe Jackson has challenged the government’s reported figures concerning the depreciation of the cedi against major trading currencies in 2023.
During a press briefing on May 24, 2024, Finance Minister Dr. Mohammed Amin Adam presented an update on the economy, claiming that the cedi’s depreciation against the US dollar had reduced significantly from 54.2% at the end of November 2022 to 27.8% by December 2023.
He further expressed optimism that the cedi would continue to strengthen 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.
However, Jackson contested these figures, stating that they do not align with data available online, particularly with exchange rate figures provided by the Bank of Ghana.
Referring to the minister’s assertions regarding the cedi’s future stability, Jackson emphasized the importance of this stability translating into tangible benefits for the average Ghanaian.
“The minister may have gotten his figures a little wrong. I don’t think that in May 2023 it was that kind of figure.
“If you go online and you look at the Bank of Ghana rate and other quoted rates; anybody can go to www.xe.com, put the US dollar to cedi rate, you will see that today’s rate is quoted as 14.55 coming from the central bank,” the finance expert said.
He continued, “On May 24, 2024, the quoted rate there is 10.75. Today, the quoted rate is 14.55, the depreciation is around 24%.”
“…As for the cedis being strong, he can’t say that. We feel it in our pockets, we feel it when we buy clothes… you feel it everywhere,” Jackson argued.