Deputy Minister for Finance, Dr. Stephen Amoah, has described the depreciation of the Ghanaian cedi as a chronic issue stemming from the country’s import-driven economy.
In a media address on Wednesday, he emphasized that the high demand for the dollar, driven by imports, perpetuates the cedi’s depreciation.
He asserted that this issue demands national attention and extends beyond the capabilities of any single government to resolve.
Dr. Amoah assured that Vice President Dr. Mahamudu Bawumia, if elected, plans to develop a long-term strategy to address the depreciation of the cedi.
“Cedi depreciation is a ritual problem, I agree with you. It’s not because of one particular government…It’s an issue that has nationalistic or that needs nationalistic attention,” Dr Amoah said.
The Deputy Finance Minister added “so far as we keep on being an importer-driven economy, we’ll be having problems with the cedi because we import almost everything. But Inshallah, Alhaji Dr. Mahamudu Bawumia, next year if he comes, we’re going to design a long-term framework to deal with the cedi.”
Over the past month, the Ghanaian cedi has weakened further against the US dollar and other major foreign currencies.
Meanwhile, on May 24, Finance Minister Dr. Mohammed Amin Adam assured that the Ministry of Finance is collaborating with the Bank of Ghana to implement measures to address the depreciation of the cedi.
These measures include expediting the fiscal consolidation process by rationalizing spending and enhancing revenue mobilization, intensifying the gold-for-oil program, and appropriate foreign exchange interventions by the Bank of Ghana, among other strategies.
Additionally, on Monday, May 27, in response to regulatory concerns, the Bank of Ghana (BoG) established a task force dedicated to overseeing all foreign exchange bureaus and enforcing compliance with regulatory standards.
The primary objective of this task force is to address the activities of illegal operators within the foreign exchange market and promote enhanced market transparency.
By closely monitoring the operations of these bureaus, the BoG aims to mitigate unauthorized practices and foster a more regulated and transparent environment within the foreign exchange sector.