The Minister of Finance Dr Moahmmed Amin Adam has assured that the Cedi is expected to be strengthened in the medium term after the completion of the domestic debt exchange programme.
He also stated that local currency is expected to gain as the managers of the economy make more progress on fiscal consolidation, and improve on the reserves over the medium-term.
Dr Amin Adam said this while speaking at his monthly briefing on the economy in Accra on Friday, May 24.
“But for recent pressures, we are seeing on exchange rate movements, the exchange rate has been largely stabilised with the depreciation of the cedi against the US Dollar halving from 54.2% at the end of Nov 2022 to 27.8% at the end of Dec 2023.
“The Cedi’s stability has continued into 2024, with a cumulative depreciation of 14.2% as of 20th May 2024, compared to 20.7% recorded in the same period in 2023. We expect the cedi’s stability to improve into the medium-term as we complete debt restructuring, make more progress on fiscal consolidation, and improve our reserves over the medium-term.”
“The recent pressures we are observing on the cedi is largely on the back of the strengthening of the US Dollar against major trading currencies, seasonal forex demand including elevated demand from corporate institutions, payment to contractors and to IPPs, high Cedi liquidity and speculation.”
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