Businesses and individuals who are apprehensive about a possible depreciation of the cedi ahead of the Christmas and New Year festivities have been assured to remain calm as there are several efforts to maintain the stability of the local currency.
Finance Minister, Dr. Mohammed Amin Adam gave this assurance when he spoke at a Press Briefing in Washington DC on the sidelines of the World Bank and the IMF Meetings.
The Finance Minister maintained that the cedi has been fairly stable for some time now. This assertion is contested as developments in the various forex bureaux do not support his claims. Checks by The High Street Journal reveal that as of last Friday, the US dollar was selling at ₵16.80 from ₵16.50 in some forex bureaux.
The ever-free-fall of the cedi in recent times has caused some individuals to even call out the Vice President, Dr. Mahamudu Bawumia over his silence on the situation. As Ghana gears toward the end-of-year festivities, the business community is anxious due to the constant depreciation of the cedi ahead of every Christmas and New Year period.
But Dr. Amin Adam says the Bank of Ghana has accumulated enough forex reserves to cushion the cedi as the demand is expected to surge. In addition, he revealed that there is an expected inflow of forex from both the IMF and the World Bank which will supplement the forex accumulated by the Centra Bank.
The government expects a $360 million inflow from the IMF within the first week of December in addition to an expected US$300 million from the World Bank. The Minister believes these expected inflows in addition to the reserves of the Bank of Ghana will shield the cedi against depreciation as the year draws to a close.
“The Cedi has stabilized for some time now in the last one month or so. We have seen stability in the cedi and we are determined to continue to stabilize the cedi. The worry by many people is that demand for forex will increase as we go closer to Christmas,” he noted.
He continued that, “the Bank of Ghana has accumulated significant reserves to meet the demands. The IMF after the board approval on the 2nd of December will disburse US$360 million to Ghana. We are working with the World Bank also to disburse another US$300 million under the DPO series. So in addition to what the Bank has already accumulated in reserves, we are expecting these forex flows which certainly will help in stabilizing the cedi further into next year.”
