Finance Minister cautions against panic forex buying amid Cedi decline

Mohammed Amin Adam, Ghana's finance minister.
Mohammed Amin Adam, Ghana's finance minister.

Dr. Mohammed Amin Adam, the Minister for Finance, has cautioned against the recent panic-driven rush for foreign exchange in Ghana, which has contributed to the depreciation of the Cedi against major currencies.

Speaking during the Ministry of Finance’s Monthly Economic Update on Friday (24 May) Dr. Adam attributed the current exchange rate pressures to the strengthening of the US Dollar, seasonal forex demand, and other temporary factors while affirming the government’s implementation of robust measures to ensure continued stability.

“There is no need to rush and buy forex,” the finance minister declared, emphasizing an anticipated inflow of at least $2.32 billion by the end of the year.

He highlighted various sources of these inflows, including disbursements from the IMF and World Bank, the Gold-for-Oil Programme, the Bank of Ghana’s (BoG) Gold for Reserves programme, and proceeds from the Cocoa Syndicated Funds.

“We expect total disbursements of at least US$2.32 billion before the end of the year to add to the significant foreign exchange reserves already built up by the BoG,” Dr. Adam added.

Acknowledging recent pressures, Dr. Adam remained optimistic about the medium-term stability of the Cedi, noting a cumulative depreciation of 14.2% as of May 20, 2024, compared to 20.7% during the same period in 2023.

He projected that the Cedi would stabilize and improve as the government progresses with debt restructuring, fiscal consolidation, and bolstering the country’s reserves.



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