Cedi stabilization efforts underway: Ministry of Finance, BoG collaborate on solution

Minister of Finance Dr Mohammed Amin Adam has assured Ghanaians government is working with the Bank of Ghana (BoG) to implement measures to address the depreciation of the Cedi.

In its monthly press engagements, Dr Adam said the measures include fast tracking the fiscal consolidation process through rationalizing spending and enhancing revenue mobilization, intensification of the gold-for-oil programme, and appropriate forex interventions by the BoG.

The disbursements of the 3rd Tranche under the 2nd Review of the IMF-supported PC-PEG after the IMF Executive Board approval in June 2024 would come in handy to boost the country’s reserves.

The Minister said his outfit was expecting disbursements from other ongoing projects including the US$150 million World Bank Loan following “the parliamentary approval last week Friday.”

The disbursement of US$300 million under the World Bank DPO2, possibly in the third quarter of 2024 would make some impact on the cedi.

According to Dr Adam, the expected 2024/25 Cocoa syndication proceeds in the 4th quarter of 2024 will support the strengthening of the cedi as they boost supply of Forex to the markets.

 “We therefore 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,” he stated.

The Minister assured Ghanaians that “there is enough foreign exchange supply. Hence, there is no need to rush and buy forex.”

The continued depreciation of the cedi against key trading currencies remains a concern for businesses, government and the broader economic landscape.

The disappointing performance of the cedi has  necessitated the need for strategic economic interventions to bolster the cedi and sustain investor confidence in the stock market.