The Minister of Finance, Dr. Mohammed Amin Adam, has announced that the depreciation of the Cedi has been largely stabilized from November 2022 to December 2023 and continues to experience a fair appreciation against the Dollar in 2024.
At his monthly briefing on the economy, the minister stated that 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.
“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,” Dr. Amin Adam said.
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. The minister attributed the recent pressures on the Cedi to the strengthening of the US Dollar against major trading currencies, seasonal forex demand, high Cedi liquidity, and speculation.
“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,” he explained.
Dr. Amin Adam also enumerated a number of measures the government is working on to further improve the strength of the Cedi against some major trading currencies, including enhancing revenue mobilisation and approval of World Bank loans.
The weakening of the Cedi has left some trader groups, including GUTA and Organised Labour, calling for urgent measures to halt the depreciation.
