By Francis Ntow
Accra, July 1, GNA – Dr Mohammed Amin Adam, Finance Minister, as encouraged all stakeholders, particularly, the Minority in Parliament, to stop fuelling speculation to enable the Cedi to remain strong.
He said the Cedi had become stronger due to the implementation of sound policies, completion of the country’s debt restructuring with bilateral official creditors and Eurobond holders, and expected flows from external sources.
While, the 2024 year-to-date depreciation of the Cedi against its major trading currency, the Dollar, stood at 18.4 per cent, compared with the 22 per cent recorded in 2023, there have been some fall in the past month.
He was concerned that deliberate efforts of some people, including urging Ghanaians to buy Dollars, would dampen the government’s measures in strengthening of the Cedi to support economic growth and stability.
Dr Amin Adam was speaking at a joint press briefing on Monday, July 1, 2024, on Ghana’s economy and progress of the implementation of the US$3 billion loan-support programme with the International Monetary Fund (IMF).
It was held by the Ministry of Finance, together with the Bank of Ghana (BoG), and the IMF.
The Minister noted that while the government was implementing measures to influence market sentiments positively, it had gathered intelligence about some people deliberately inciting speculation, and called for a stop to it.
“We all need to work together, whether we’re with the government or with the Minority, because we’re all stakeholders in this economy. We have a duty to our people to ensure that the economy is stronger for the benefit of all,” he said.
“So, my friends on the Minority side, I want to appeal to you to stop inciting speculation, and to work with us, give us constructive criticisms and ideas to complement the ideas we’re already pursuing so we can provide the kind of direction our people expect of us,” he added.
The key measures being implemented to tackle the depreciation of the Cedi, he said included tight monitoring policy by the Central Bank, deepening fiscal consolidation, intensifying gold for oil, and gold for reserve programmes.
In addition to these are forex inflows including the third tranche of US$360 million, and IMF fourth tranche of US$360 million expected in the fourth quarter of 2024 after IMF Executive Board approves the third review.
The other forex inflows are, the World Bank DP02 tranche of US$300 million expected in third quarter of 2024, and disbursements from bilateral institutions/financial institutions including the World Bank GARID Project (US$150 million).
Another forex inflow is expected from the ECOWAS Bank for Investment and Development (EBID) facility of US$200 million for SME support, and anticipated proceeds from 2024/2025 Cocoa Board (COCOBOD) syndication of up to US$1.5 billion in the fourth quarter of 2024.
Dr Ernest Addison, Governor, Bank of Ghana, said the trajectory of inflation in 2023 had seen a sharp fall from 54 per cent at the end of 2022 to 23 per cent, but its sustainability would depend on the behaviour of the exchange rate.
“Improving economic fundamentals, strong accumulation of foreign exchange reserves under the Gold for Reserve programme, and the agreement with the Official Creditor Committee (OCC) and sovereign bondholders on debt restructuring should all, in concept, provide the basis for stability in the exchange rate going forward,” he reiterated.
Dr Addison said the rest of the year would be challenging, but pledged the Central Bank’s resoluteness in working with the Ministry of Finance and the IMF to ensure that the improving outlook was sustained.
GNA