Dr Mohammed Amin Adam, Minister of Finance, has announced that the anticipated US$1.2 billion from development partners, including the International Monetary Fund (IMF), the World Bank, and the African Development Bank (AfDB), will help strengthen the local currency against major trading currencies.
Speaking at the inaugural monthly press briefing of the Finance Ministry on Tuesday (26 March) in Accra, Dr Amin Adam highlighted that the recent depreciation of the Ghanaian cedi to GHC12.8 to a dollar was due to both domestic and international factors.
He stated that the strengthening of the United States dollar against major trading currencies was a significant international factor contributing to the depreciation.
The minister also cited local factors such as payments made by the energy and corporate sectors, along with the delayed disbursement of the cocoa loan, as additional pressures on the local currency. Apexnewsgh reports
Despite these challenges, interventions such as inflows from remittances, contributions from mining companies, and the Bank of Ghana’s local gold purchases have helped mitigate the impact of the depreciation.
Dr. Amin Adam noted that additional planned disbursements for ongoing infrastructure projects are expected to further bolster the local currency.
The Bank of Ghana reported that the cedi depreciated by 0.7% in January 2024, a significant improvement compared to the 30% depreciation experienced in January 2022.
The Finance Minister remains optimistic about the future of the local currency, as efforts are being made to address both international and domestic factors affecting its performance in the market.
Source: Apexnewsgh.com/Ghana
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