No need to rush with Forex: Finance Minister warns | business news

Finance Minister Dr. Mohammed Amin Adam has warned against the recent panic-driven forex rush in the country that has seen the Cedi lose ground against its major trading partners.

Speaking during the Ministry of Finance’s Monthly Economic Update on Friday, May 24, 2024, the Minister attributed the current currency pressures to the strengthening of the US dollar against major trading currencies, seasonal demand for foreign exchange and other temporary factors, stating that the Government is implementing robust measures to ensure continued stability.

“There is no need to rush to buy foreign currency,” declared the Finance Minister, pointing to a planned inflow of at least $2.32 billion by the end of the year. He highlighted multiple sources of these inflows, including IMF and World Bank disbursements, the Gold for Oil Programme, the Bank of Ghana’s (BoG) Gold for Reserves program and income from the Cocoa Syndicate Funds.

“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 added.

He acknowledged the recent pressures, but remained optimistic about the medium-term stability of the Cedi, with a cumulative depreciation of 14.2% as of May 20, 2024, compared to 20.7% recorded in the same period in 2023.

Dr. Amin Adam maintained that the Cedi is expected to be largely stable and improve in the medium term as the government completes its debt restructuring, further progresses fiscal consolidation and improves the country’s reserves during the same period.

The Minister also detailed the progress made under the IMF-supported Post-COVID-19 Economic Growth Program (PC-PEG). Following a successful second IMF review mission in April 2024, Ghana secured a staff level agreement (SLA), which paved the way for the IMF Executive Board to consider and approve the disbursement of a third tranche of 360 million dollars in June, bringing total disbursements to $1.56 billion.

“The positive results of the first and second reviews of the implementation of the IMF-supported Program demonstrate that we are achieving the Program’s objective of restoring macroeconomic stability and debt sustainability,” the Minister commented.

He highlighted the resilience of the economy and cited GDP growth of 2.9% in 2023, surpassing both the original projection of 1.5% and the revised projection of 2.3%.

The Minister assured that the Ministry of Finance is working closely with the Bank of Georgia to implement measures to address the perennial depreciation of the Cedi, including accelerated fiscal consolidation, intensification of the Gold for Oil and Gold for Reserves programs, and strategic interventions in foreign currency. by the BoG.


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