Minister says stability in sight for cedi as government expects $2.32b forex inflows to curb depreciation

Dr. Mohammed Amin Adam, the Minister of Finance, says the government is expecting $2.32 billion inflows from its development partners to stabilize the cedi.

“We therefore expect total disbursements of at least $2.32 billion before the end of the year to add to the significant foreign exchange reserves already built up by the BoG,” he said.

He said inflows from the World Bank, the third tranche of the International Monetary Fund Extended Credit Facility, cocoa syndicated proceeds will aid government efforts to stabilise cedis.   

“The disbursements of the 3rd Tranche under the 2nd Review of the IMF-supported PC-PEG after the IMF Executive Board approval in June 2024; disbursement from other ongoing projects, including the $150 million World Bank Loan following the parliamentary approval last week Friday,” he said.

“The expected disbursement of $300 million under the World Bank DPO2, possibly in the 3rd quarter of 2024, 2024, Disbursements of $200 million to Ghana EXIM Bank and GCB by EBID later in the year. The expected 2024/25 Cocoa syndication proceeds in the 4th quarter of 2024 will all support the strengthening of the cedi as they boost supply of Forex to the markets,” he said.

Dr. Amin also enumerated a number of measures the government had undertaken in conjunction with the central bank to complement the expected inflows from the development partners to stabilize the cedi. 

The measures, according to the minister, included fast tracking of the fiscal consolidation process through rationalizing spending and enhancing revenue mobilization, intensification of the gold-for-oil programme, and appropriate FX interventions by the BoG.

Dr. Amin also said the government would intensify the gold for reserve programme by the central bank to shore up Ghana’s reserve.

Source: GNA