Source: newsthemegh.com
The recent demand for foreign exchange, which, according to Finance Minister Mohammed Amin Adam, has led the cedi to lose value against major currencies of trade, has prompted Ghanaians to remain calm.
Dr. Amin Adam clarified during the Ministry of Finance’s Monthly Economic Update on Friday, May 24, 2024, that the US dollar’s strengthening, seasonal forex demand, and other transient variables are to blame for the current exchange rate pressures.
He gave advice, pointing out that by year’s end, at least $2.32 billion is anticipated to enter the nation.“There is no need to rush and buy forex,”
This money will come from a number of sources, such as payments made by the World Bank and IMF, the Bank of Ghana’s Gold for Reserves program, the Gold-for-Oil Program, and earnings from Cocoa Syndicated Funds.
“We expect total disbursements of at least $2.32 billion before the end of the year, which will add to the significant foreign exchange reserves already built up by the Bank of Ghana,” he stated.
Despite recent difficulties, Dr. Amin Adam maintained his optimism over the medium-term durability of the cedi.
The depreciation of the cedi as of May 20, 2024, was 14.2%, as opposed to 20.7% during the same period in 2023.
As the government completes debt restructuring, moves on with budgetary consolidation, and increases the nation’s reserves, he expects more stability.
The minister also discussed the advancements made possible by the Post-COVID-19 Programme for Economic Growth (PC-PEG), which is supported by the IMF.
“The positive results of the first and second reviews of the IMF-supported Programme show that we are achieving our goals of restoring macroeconomic stability and debt sustainability,” Dr. Amin Adam said.
Ghana obtained a Staff Level Agreement after the IMF’s successful Second Review Mission in April 2024. This cleared the way for the IMF Executive Board to examine and approve the delivery of a third tranche of $360 million in June, bringing the total amount of disbursements to $1.56 billion.
He emphasized the economy’s resiliency by pointing out that GDP growth in 2023 was 2.9%, higher than both the 1.5% initial prediction and the 2.3% revised projection.
The Minister gave his word that the Ministry of Finance and the Bank of Ghana are collaborating closely to address the devaluation of the Cedi. This entails quickening the pace of fiscal consolidation, stepping up the Gold-for-Oil and Gold-for-Reserves initiatives, and implementing deliberate Bank of Ghana foreign exchange interventions.