Finance Minister-Designate Aims to Reduce Annual Cedi Depreciation Rate to 8%
Dr. Cassiel Ato Forson, the Finance Minister-designate, has announced plans to reduce Ghana’s annual currency depreciation rate to 8% within the shortest possible time.
Speaking during his vetting before the Appointments Committee of Parliament on Monday, January 13, Dr. Forson revealed that stabilising the cedi was a key priority for the new administration.
“We intend to reduce depreciation to 8% in the shortest time,” he said, emphasizing the importance of a comprehensive strategy to achieve this target.
Dr. Forson outlined several measures, including enhancing foreign exchange reserves, increasing export revenues, and reducing unnecessary imports.
These interventions, he explained, would help stabilise the local currency and boost economic confidence.
The Finance Minister-designate also highlighted the importance of addressing structural issues contributing to currency instability.
He assured the Committee of his readiness to collaborate with stakeholders to foster a sustainable economic environment.
The cedi has faced persistent depreciation, losing about 20% of its value against the U.S. dollar in 2024, with an average annual depreciation rate of 23%.
Market data indicates that the cedi started 2025 at GHS 15.68 to the dollar and has since weakened to GHS 15.85, reflecting a year-to-date loss of 1.27%.
This trend is attributed to corporate demand for the dollar coupled with limited foreign exchange liquidity following the festive season.
Dr. Forson’s proposed interventions aim to reverse this trajectory and restore confidence in the local currency, ensuring long-term economic stability.
