No need to rush and buy forex amid cedi depreciation; it will bounce soon — Finance Minister

Headlines Finance Minister Dr. Mohammed Amin Adam
Finance Minister Dr. Mohammed Amin Adam

The Minister of Finance, Dr. Mohammed Amin Adam has warned that there will be no need to rush and buy foreign exchange amid recent depreciation pressure on the Ghana cedi.

In the minister's monthly press briefing on the economy on Friday, May 24, he said total expected disbursements of over USD 2.3 billion before the end of the year will help shore up foreign exchange reserves and strengthen the cedi.

"We wish to assure Ghanaians that there is enough foreign exchange supply. Hence, there is no need to rush and buy forex," Dr. Adam stated.

According to the finance minister, the current depreciation is due to seasonal factors including high corporate demand and speculation.

However, a raft of measures are being implemented to address the situation including fast-tracking fiscal consolidation and intensifying gold for oil and reserves programs.

Key expected inflows include the third tranche of USD 360 million from the IMF after approval of the second review in June and disbursements from multilateral partners like the World Bank.

The finance minister was confident these funds coupled with 2024/25 cocoa syndication proceeds will significantly boost forex reserves to stabilize the cedi.

"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," Dr. Adam assured.

The currency is now being sold at around GHS15 per US dollar with the prediction that it will finish the year at GHS16, according to Bloomberg.

Isaac Donkor Distinguished
Isaac Donkor Distinguished

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