Finance Minister expects $1.2 billion inflows from IMF and World Bank to bolster Cedi

Dr. Mohammed Amin Adam, the Minister of Finance, anticipates that the anticipated $1.2 billion influx from development partners, including the IMF, World Bank, and AFDB, will fortify the local currency against major trading counterparts.

During a press briefing held at the Ministry of Finance (MOF) premises, Dr. Amin emphasized that the forthcoming disbursements from development partners would contribute to strengthening the local currency, which currently trades at GHS 12.8 to a dollar.

He attributed recent depreciation to a blend of domestic and international factors. Specifically, he cited the United States dollar's strengthening against major trading currencies as an international factor influencing the cedi's depreciation.

Moreover, Dr. Amin pointed to local dynamics such as payments by the energy and corporate sectors, along with delays in cocoa loan disbursements, exacerbating pressure on the local currency.

However, the Minister highlighted interventions that have mitigated the depreciation's impact, including remittance inflows, contributions from mining companies, and the Bank of Ghana's local gold purchases.

Dr. Amin underscored the positive outlook, noting that planned disbursements for ongoing infrastructure projects are expected to further reinforce the local currency.

Data from the Bank of Ghana reveals that the cedi depreciated by 0.7 percent in January 2024, a notable improvement compared to the 30 percent depreciation recorded in January 2022.