The Cedi will stabilise after the completion of debt exchange. Finance minister
Dr Moahmmed Amin Adam, the Finance Minister has assured that the current cedi depreciation will halt in the medium and long term. He said the Ghanaian currency will stabilize after the completion of the domestic debt exchange.
But for recent pressures, we are seeing on exchange rate movements, the exchange rate has been largely stabilised with the depreciation of the cedi against the US Dollar halving from 54.2% at the end of Nov 2022 to 27.8% at the end of Dec 2023.
“The Cedi’s stability has continued into 2024, with a cumulative depreciation of 14.2% as of 20th May 2024, compared to 20.7% recorded in the same period in 2023. We expect the cedi’s stability to improve into the medium-term as we complete debt restructuring, make more progress on fiscal consolidation, and improve our reserves over the medium term”.
“The recent pressures we are observing on the cedi is largely on the back of the strengthening of the US Dollar against major trading currencies, seasonal forex demand including elevated demand from corporate institutions, payment to contractors and to IPPs, high Cedi liquidity and speculation.
Dr Amin Adam said this while speaking at his monthly briefing on the economy in Accra.
Relatedly, the Ghana Union of Traders Association (GUTA) has called on the Bank of Ghana (BoG) to ease its stringent currency exchange regulations.
This appeal, by the President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, highlights the growing concerns among traders and businesses who are feeling the strain of the fluctuating exchange rates on their operations and profitability.
He argued that a more flexible approach is needed to support traders and businesses during these turbulent times.
Because you know, the fear factor there is the documentation, the requirement, stringent documentation. They have to relax their stringent documentation.
“If you make a stringent documentation requirement, then people do not transact through the banks. For the Bank of Ghana what you need is a bill of lading and then your transactional value, that should be enough for you. People will not be panicked about whatever the accounting aspect of all that,” Dr. Obeng stated.
He proposed that the BoG consider a temporary relaxation of these rules to provide much-needed relief to traders. This could involve measures such as increasing the daily foreign exchange limits for businesses and simplifying the process for accessing foreign currencies.
Ghana government's reckless borrowing weakening banks - Banking consultant
Dr. Atuahene further highlighted that the government’s borrowing spree is depriving the private sector of essential capital, thereby stunting economic growth. He refuted claims of economic growth, suggesting that the figures do not reflect reality. “When I hear them say the economy is growing, from the figures available, I don’t see the growth anywhere because it is the private sector that grows the economy and not the government sector. Unfortunately, the private sector is deprived of capital and cannot expand business,” he added.
The banking consultant’s comments come amid growing concerns over the sustainability of the country’s financial practices and the health of its banking sector. His warning emphasises the need for prudent fiscal management and the potential consequences of unrestrained borrowing..
Ever since we went through the domestic debt exchange programme, the government has borrowed as if it’s nobody’s business,” Dr Atuahene remarked. He expressed concern that the government’s borrowing strategy—using short-term funds to finance long-term projects—is unsustainable. “The way we are going, if we continue the trajectory that we are taking, the banks are going to be in trouble because the government is out of the financial market and it is not paying its outstanding debts.”
Bediatuo Asante denies advising Canadian Embassy to cut visa issuance to Ghanaians
Nana Asante Bediatuo, the Executive Secretary to President Akufo-Addo has strongly denied that he advised the “Canadian Embassy to reduce visa issuance rate to Ghanaians,” as recently reported by some online portals.
Lawyers for Bediatuo Asante in a May 21 statement said the reports are false and must be disregarded by the general public.
Bediatuo Asante’s lawyers made specific references to amnewsworld.com and thinknewsonline.com that published the allegations and wildly circulated them, and urged the public to treat those publications with contempt.
We act as Solicitors for Nana Bediatuo Asante, the Secretary to the President and write pursuant to his instructions.
Our Client’s attention has been drawn to a false online publication under the headline “Asante Bediatuo Advises Canadian Embassy to Reduce Visa Issuance Rate to Ghanaians” published on amnewsworld.com by Ohene Anochie dated Thursday, 16th May, 2024.
The said publication alleged that our Client; “has secretly advised the Canadian Embassy in Ghana to reduce the rate at which it issues visas to Ghanaian nationals. Bediatuo reportedly made the announcement at a secret meeting with H.E Christopher Thornley claiming Ghana is losing a lot of young vibrant workforce to other countries.”
The same false story has been re-published by Joshua Kwabena Smith on thinknewsonline.com
We are instructed to inform the public that the publication referred to supra is palpably false and same should be disregarded and treated with the contempt it deserves.