Finance minister, Cassiel Ato Forson, has highlighted the depreciation of the Ghanaian Cedi and outlined key measures to stabilize the currency. Addressing Parliament, he noted that as of March 14, 2025, the Cedi had depreciated by 5.3% against the US dollar, a slight improvement from the 5.7% depreciation recorded over the same period in 2024.
Mr. Forson attributed the depreciation to tight foreign exchange (FX) liquidity and increased demand for forex due to energy sector payments and commercial transactions. However, he acknowledged that the Cedi has shown stability since February 19, following interventions by the Bank of Ghana (BoG) aimed at improving market confidence and FX liquidity.
To sustain this stability, he emphasized that the government will implement several measures to complement the BoG’s monetary and exchange rate policies. These measures include:
-Establishment of GoldBod: This initiative is aimed at generating and accumulating forex to support the Cedi’s stability.
Continuation of FX Forward Auctions: The Bank of Ghana will persist with its forex forward auctions to manage FX supply and stabilize the currency.
–Fiscal Consolidation: The government plans to reduce public sector spending and cut the fiscal deficit to ease pressure on the exchange rate.
Import Substitution Under the 24-Hour Economy: Encouraging domestic production of key goods that are typically imported will help reduce the nation’s forex demand and promote long-term stability.
Mr. Forson assured that these measures, if effectively implemented, will help stabilize the Cedi, enhance investor confidence, and promote economic growth.
