Finance Minister Mohammed Amin Adam has reassured the general public about the cedi’s stability, in spite of recent depreciation tendencies.
The Cedi has experienced a very sharp decline in the weeks. The Cedi traded GH₵14.50 to GH₵15 to the dollar as of May 16, 2024.
But the Finance Minister in response to questions from the public during the Ministry’s monthly economic briefing, emphasized that the cedi has demonstrated stability in 2024.
“The Cedi’s stability has continued into 2024 with a cumulative depreciation of 14.2% [from January] as of May 20, compared to 20.7% recorded in the same period in 2023.
“People may see the cedi depreciating fast recently, but if you compare the rate of depreciation this year which has been 14.2% from January to May to that of the same period last year, this year’s rate is better.
“So on that comparative note, we are safe to conclude that the cedi is still strong. It is very strong,” he said on Friday.
Dr. Amin Adam expressed confidence that the Cedi will regain its strength soon as debt restructuring, fiscal consolidation, and reserves enhancement efforts are ongoing.
“We expect the cedi to improve into the medium term as we complete the debt restructuring, make progress on fiscal consolidation, and improve on our reserves,” he explained.
The current pressure, according to the Minister, can also be attributable to the US dollar’s rise relative to other major world currencies, such as the cedi of Ghana.
“The recent pressure on the cedi are largely a result of the strengthening of the US dollar against major trading currencies across the world, including Ghana’s cedi. Therefore, we expect that as the US currency moderates in its strength, the effects will be felt in our currency.”
