Staying within a band of around 5% per annum, President John Dramani Mahama has projected that the cedi’s depreciation will remain moderate in the coming months.
He also described that the recent currency fluctuations is part of a natural adjustment process rather than a sign of renewed instability.
The President acknowledged during his speech at a media engagement on Wednesday, that the Bank of Ghana (BoG) had intervened aggressively in the first half of 2024, when the local currency depreciated by nearly 25%.
He noted, however, that the central bank has since scaled back direct interventions as the cedi shows signs of stabilizing.
The President reassured businesses and investors of improved currency stability, emphasizing that the government’s commitment to fiscal discipline, careful spending and stronger economic fundamentals will create a more stable and predictable climate for trade and investment.
“I believe the key issue is halting the rapid depreciation of the currency. In 2024, for instance, we saw about a 25% fall in just the first half of the year, which made planning extremely difficult. Yes, the Bank of Ghana had been intervening in the forex market, but they have since pulled back.’ He said.
The President again added that the Cedi is currently adjusting, and he believes it will stabilize at a certain rate and that they will ensure that any depreciation remains controlled, within a margin of about 5% per year.
The Cedi recorded strong gains against major international currencies earlier this year, but its recent slowdown has raised concerns about a possible reversal of those achievements.
source: gitficonline.com