The Minister of Finance, Dr Cassiel Ato Forson, has assured stakeholders that the latest appreciation of the Ghanaian cedi will not be a fleeting improvement however the results of deliberate and strategic financial administration.
In submit on X after assembly with the management of the Meals and Beverage Affiliation of Ghana (FABAG), he reiterated the federal government’s dedication to sustaining the cedi’s stability and energy.
“I wish to use this opportunity to guarantee all of you that the appreciation of the cedi won’t solely proceed however can be sustained,” he acknowledged.
Dr Forson defined that the constructive pattern was underpinned by sound financial planning and strategic interventions.
“The soundness and appreciation you might be witnessing will not be a knee-jerk response; it’s the product of cautious, well-thought-out planning,” he famous.
In latest weeks, the cedi has recorded vital features in opposition to main buying and selling currencies.
The interbank charge presently stands at GH¢13.29 to the US greenback, a notable enchancment from over GH¢16 earlier this yr.
In a associated improvement, the Centre for Coverage Scrutiny (CPS), has cautioned that the spectacular run may be extra fragile than it appeared, and urged pressing structural reforms to make the features sustainable.
In its new coverage dialogue paper by the CPS, titled ‘Ghana’s Cedi Holds Regular – However Can the Calm Final?’, it mentioned the cedi’s appreciation rising from GH¢15.50 to the U.S. greenback in mid-April to GH¢13.30 by Could 7 had been underpinned by each world and home components, together with a weakening U.S. greenback, improved gold and worldwide reserves, diminished authorities spending, and investor optimism.
The suppose tank argued that these drivers may not be sustainable within the medium to long run except backed by deeper financial reforms.
“The cedi’s latest appreciation is encouraging, however most of the components behind it resembling decrease debt servicing and constrained public expenditure are momentary,” the paper famous.
It mentioned “With out comprehensive structural insurance policies, the cedi’s energy could also be short-lived.”
A powerful cedi it mentioned additionally seemed to be aiding the inflation struggle including that imported inflation had been easing, contributing to a downward pattern in total inflation since January.
“Ghanaians might start to see some cost-of-living aid,” it mentioned.
Worldwide traders are additionally taking discover. With gross international reserves rising to $9.4 billion as of March—up from $6.2 billion a yr prior Ghana is considered as a extra secure and creditworthy vacation spot for capital.
Regardless of the present optimism, the CPS warned that the cedi’s newfound energy was not without penalties or dangers.
A stronger foreign money, it mentioned, might hurt export aggressiveness by making Ghanaian items costlier overseas.
“There may be additionally the danger of import surges, which might belowmine native industries and widen the commerce deficit,” it mentioned.
BY TIMES REPORTER
