Monday, 17 June

Cedi still strong – Finance Minister

Business
Mohammed Amin Adam

Finance Minister Mohammed Amin Adam has reassured the public about the resilience of the cedi, despite recent depreciation trends.

During the Ministry’s monthly economic update, he addressed growing concerns, emphasizing the currency’s considerable stability throughout 2024.

Minister Adam highlighted that while the cedi has experienced fluctuations, it has maintained a relatively stable trajectory over the year.

This stability, he asserted, is indicative of robust underlying economic fundamentals and effective fiscal policies.

“The Cedi’s stability has continued into 2024 with a cumulative depreciation of 14.2% [from January] as of May 20, compared to 20.7% recorded in the same period in 2023.

“People may see the cedi depreciating fast recently, but if you compare the rate of depreciation this year which has been 14.2% from January to May to that of the same period last year, this year’s rate is better.

“So on that comparative note, we are safe to conclude that the cedi is still strong. It is very strong," he said on Friday.

However, the cedi has recently encountered a sharp decline. As of May 16, the local currency was trading between GH₵14.50 and GH₵15 to the dollar.

This depreciation has raised concerns among citizens and investors alike, prompting the Ministry to provide assurances and outline measures to mitigate further volatility.

Mr Adam acknowledged the challenges but remained optimistic, citing ongoing efforts to strengthen the economy and stabilize the currency. He emphasized the government's commitment to maintaining monetary stability and fostering economic growth.

 

Source: Classfmonline.com/Emmanuel Mensah