Ghana’s Cedi Expected to Stabilize Within 5% Depreciation, President Mahama Says

President John Dramani Mahama has projected that the Ghanaian cedi will maintain moderate depreciation in the coming months, remaining within a band of around 5% annually. The President emphasized that the recent currency fluctuations are part of a normal adjustment process rather than an indication of renewed economic instability.

Speaking at a media engagement on Wednesday, President Mahama acknowledged that the Bank of Ghana (BoG) had intervened aggressively in the first half of 2024, a period when the cedi depreciated by nearly 25%. The central bank’s interventions, he said, were critical in managing the sharp decline and preventing further economic disruption.

However, Mahama noted that the BoG has since scaled back direct market interventions as the local currency shows signs of stabilizing. “The cedi is making an adjustment, and I believe it will settle at a certain rate,” he explained, assuring that any future depreciation would remain within a controlled margin of about 5% per annum.

The President also highlighted the government’s commitment to fiscal discipline and prudent expenditure management as key factors in promoting a more predictable environment for trade and investment. He urged businesses and investors to take confidence in the strengthened macroeconomic fundamentals guiding the economy.

Earlier this year, the cedi experienced sharp appreciation against major international currencies, but recent weeks have seen a slowdown, prompting some concern over a possible reversal of earlier gains. President Mahama reassured stakeholders that the government and central bank are closely monitoring the situation to maintain stability and support economic growth.

source: citi newsroom