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Stability in sight as government expects foreign exchange inflows of $2.32 billion to curb Cedi depreciation

By Jibril Abdul Mumuni

Accra, May 24, GNA – Dr. Mohammed Amin Adam, Minister of Finance, says the government expects inflows of $2.32 billion from its development partners to stabilize the cedi.

“Therefore, we expect total disbursements of at least $2.32 billion by the end of the year to add to the significant foreign exchange reserves already accumulated by the Bank of Georgia,” he said.

He said inflows from the World Bank, the third tranche of the International Monetary Fund’s Extended Credit Facility and syndicated cocoa revenues will help the government’s efforts to stabilize the cedis.

“Third tranche disbursements under the second review of the IMF-supported PC-PEG following approval by the IMF Executive Board in June 2024; disbursement of other ongoing projects, including the $150 million loan from the World Bank following parliamentary approval on Friday last week,” he said.

“Expected disbursement of $300 million under the World Bank DPO2, possibly in Q3 2024, disbursements of $200 million to Ghana EXIM Bank and GCB by EBID later in the year. The expected revenue from Cocoa syndication in 2024/25 in Q4 2024 will support the strengthening of the cedi as they increase Forex supply to the markets,” he said.

Dr Amin also listed a number of measures that the government had taken together with the central bank to supplement expected inflows from development partners to stabilize the cedi.

The measures, according to the minister, included accelerating the fiscal consolidation process by rationalizing expenditure and improving revenue mobilization, intensification of the gold-for-oil program and appropriate foreign exchange interventions by the Bank of Georgia.

Dr Amin also said the government would step up the central bank’s gold reserve program to shore up Ghana’s reserves.

GNA

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