Cedi stability has saved Ghana GHS150bn in public debt – Elikem Kotoko

Deputy Chief Executive Officer of the Forestry Commission, Elikem Kotoko, says Ghana has already saved an estimated GHS150 billion in public debt as a result of the recent stability of the cedi, crediting coordinated efforts by key financial stakeholders.

Speaking on Channel One TV’s Breakfast Daily on Monday, July 28, Mr. Kotoko described the cedi’s performance against the dollar as a major economic turning point, pointing to the significant relief it has brought to the country’s debt stock.

“There is very significant evidence that we are heading in the right direction, with inflation dropping. By the mere fact that the efforts of the Bank of Ghana Governor, the Finance Minister, and other key stakeholders and the formation of the Gold for Oil and Gold for Reserves programmes have helped hold the dollar stable for this period, that alone has saved us GHS150 billion in our public debt,” he said.

The local currency, which currently trades at approximately GHS10.43 to the US dollar, has shown signs of relative stability in recent months after facing severe depreciation pressures in 2022 and 2023. Mr. Kotoko noted that if the cedi’s performance continues to improve and inflation drops to a single-digit rate, Ghana could see even greater debt relief.