Dr. Cassiel Ato Forson, Ghana’s Finance Minister-designate, has pledged to reduce the country’s annual currency depreciation rate to 8%, marking a significant shift toward stabilizing the cedi in response to the persistent challenges of currency depreciation Ghana has been facing.
Speaking during his vetting before the Parliamentary Appointments Committee on January 13, Dr. Forson emphasized that currency stabilization is a top priority for the new administration. He stated that curbing the depreciation rate is essential to restoring confidence in the economy and ensuring sustainable growth.
“We intend to reduce depreciation to 8% in the shortest time,” he stated, adding that this goal would be achieved through a multifaceted approach. This includes bolstering foreign exchange reserves, boosting export revenues, and curtailing unnecessary imports. By reducing the demand for foreign currency, Dr. Forson believes the cedi can be stabilized over time.
The minister-designate also highlighted the importance of addressing the structural issues that have long contributed to the cedi’s instability, noting that effective collaboration with stakeholders will be crucial in addressing these challenges. He assured the public that he is committed to promoting a stable and growing economy, even amidst the difficult challenges posed by the currency’s volatility.
The cedi has been under consistent pressure, depreciating by 20% against the U.S. dollar in 2024, with an average annual depreciation rate of 23%. As of early 2025, the currency has weakened further, trading at GHS 15.85 to the dollar, with a year-to-date loss of 1.27%. This continued depreciation highlights the severity of the economic strain that both businesses and citizens face due to a weakened national currency.
Market analysts attribute this trend to high corporate demand for dollars and constrained foreign exchange liquidity, particularly following the festive season. The situation is compounded by global economic pressures and challenges in securing the needed foreign exchange to stabilize the currency.
In light of these challenges, Dr. Forson is confident that with the right economic strategies, the cedi’s depreciation can be reduced, helping to alleviate some of the financial burdens on businesses and citizens alike.
