Ghana's Finance Minister, Dr. Mohammed Amin Adam has announced that the depreciation of the cedi has been significantly stabilised from November 2022 to December 2023, with the currency showing fair appreciation against the US dollar in 2024.

In his monthly economic briefing, Dr. Amin Adam reported that the exchange rate had stabilised, with the cedi's depreciation against the dollar halving from 54.2% at the end of November 2022 to 27.8% by the end of December 2023.

He expressed optimism about the cedi's future strength, particularly after the completion of the domestic debt exchange programme. 

“But for recent pressures we are seeing on exchange rate movements, the exchange rate has been largely stabilised,” he noted. 

“The cedi’s stability has continued into 2024, with a cumulative depreciation of 14.2% as of 20th May 2024, compared to 20.7% recorded in the same period in 2023. We expect the cedi’s stability to improve in the medium-term as we complete debt restructuring, make more progress on fiscal consolidation, and improve our reserves.”

Dr. Amin Adam attributed current pressures on the cedi to the strengthening of the US dollar against major trading currencies, seasonal foreign exchange demand, high cedi liquidity, and speculation. 

"The recent pressures we are observing on the Cedi are largely due to the strengthening of the US dollar against major trading currencies, seasonal forex demand, including elevated demand from corporate institutions, payments to contractors and independent power producers (IPPs), high cedi liquidity, and speculation,” he explained.

The minister outlined several measures to further strengthen the cedi, including enhanced revenue mobilisation and the approval of World Bank loans.

The depreciation of the cedi has prompted trader groups, including the Ghana Union of Traders Association (GUTA) and Organised Labour, to call for urgent action to halt the currency's decline.