Government Announces Measures to Stabilize Cedi

The government has announced a series of measures to stabilize the Ghana Cedi, which has depreciated by 14% against the US dollar this year. The measures include intensifying the Gold for Oil and Gold for Reserves programs, fast-tracking fiscal consolidation processes, and receiving a combined $2.3 billion from development partners.

According to the Minister of Finance, Dr. Mohammed Amin Adam, the cedi's stability has been largely maintained, with a cumulative depreciation of 14.2% as of May 20, compared to 20.7% in the same period last year. He attributed the recent pressures on the cedi to the strengthening of the US dollar against major trading currencies, seasonal forex demand, and speculation.

To address the depreciation, the government is fast-tracking fiscal consolidation processes through rationalization of spending and enhancement of revenue mobilization. The government is also expected to receive disbursements from development partners, including the International Monetary Fund (IMF), World Bank, and ECOWAS Bank for Investment and Development.

The Minister assured Ghanaians that there is enough foreign exchange supply and urged citizens to support the government's efforts to restore macroeconomic stability and economic recovery. He emphasized that the successful implementation of the IMF program and other initiatives would not have been possible without the collective effort and dedication of citizens.

The government is committed to delivering its common objective of restoring macroeconomic stability and debt sustainability, promoting stronger and more inclusive growth, and protecting the poor and vulnerable. The public debt trajectory is already showing signs of improvement, with the debt-to-GDP ratio reducing to 71.4% of GDP at the end of 2023 from 73.5% at the end of 2022