President John Dramani Mahama has forecasted that the depreciation of the cedi will remain moderate in the upcoming months, maintaining a range of approximately 5% per annum.
He characterized the recent fluctuations in currency as part of a natural adjustment process, rather than an indication of renewed instability.
During a media engagement on Wednesday, the President recognized that the Bank of Ghana (BoG) had taken aggressive measures in the first half of 2024, when the local currency experienced a depreciation of nearly 25%.
However, he pointed out that the central bank has since reduced its direct interventions as the cedi begins to show signs of stabilization.
President Mahama reassured businesses and investors of enhanced currency stability, emphasizing that the government’s commitment to fiscal discipline, prudent expenditure management, and stronger macroeconomic fundamentals will create a more predictable environment for trade and investment.
“I believe that the focus should be on halting the rapid depreciation of the currency. When there is a steep depreciation, such as the 25% decline we witnessed in the first half of 2024, it complicates planning. Therefore, while the Bank of Ghana has been active in the forex market, they have now withdrawn its interventions,” he stated.
“The Cedi is undergoing an adjustment, and I am confident that it will stabilize at a certain rate. We will ensure that any depreciation of the Cedi remains within a margin of about 5% per annum,” President Mahama further remarked.
Earlier this year, the Cedi experienced a significant appreciation against major international currencies, but its momentum has slowed in recent weeks, raising concerns about a potential reversal of the gains achieved.
