$1.2 billion disbursement from partners will mitigate cedi depreciation — Dr. Amin Adam

Economy & Investments Dr. Mohammed Amin Adam
MAR 26, 2024 LISTEN
Dr. Mohammed Amin Adam

Dr. Mohammed Amin Adam, Minister of Finance, says the expected $1.2 billion from development partners will strengthen the local currency against major trading currencies.

He said the disbursements from development partners, including the International Monetary Fund (IMF), the World Bank, and the African Development Bank (AFDB), would strengthen the local currency.

He attributed the recent depreciation to domestic and international factors, with the cedis currently trading at GHS 12.8 to a dollar.

He said this in a press briefing held at the premises of the Ministry of Finance (MOF).

Dr. Amin said international factors, particularly the strengthening of the United States dollar against major trading currencies, occasioned the depreciation of the local currency.

The Minister also attributed the depreciation to local factors, including payments made by the energy and corporate sectors, and the delayed disbursement of the cocoa loan, which compounded pressure on the local currency.

However, the Minister noted that interventions, including inflows from remittances, mining companies, and the local gold purchase by the Bank of Ghana (BOG), had minimised the impact of the depreciation.

Dr. Amin said additional planned disbursements for on-going infrastructure projects would strengthen the local currency.

According to the BOG, the cedi depreciated by 0.7 percent in January 2024, compared to 30 percent in January 2022.