Nana Akomea Urges Government to Stabilize Ghanaian Cedi in April 2024

Ghana's Cedi currency faces persistent depreciation, prompting calls for urgent government action to stabilize it ahead of the 2024 elections. Experts warn of economic implications and challenge the government's exchange rate claims.

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Ebenezer Mensah
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Nana Akomea Urges Government to Stabilize Ghanaian Cedi in April 2024

Nana Akomea Urges Government to Stabilize Ghanaian Cedi in April 2024

Nana Akomea, a prominent member of Ghana's New Patriotic Party, has called on the government to take urgent measures to stabilize the Ghanaian Cedi currency in April 2024. The Cedi has been experiencing persistent depreciation, having already weakened by 11% against the US dollar since the beginning of the year.

The Ghana Association of Forex Bureaux has expressed concerns about the Cedi's depreciation. Dr. Alex Akpabli, the Vice President of the Association, attributed the currency's decline to anticipated election spending in 2024. He emphasized the need for fiscal discipline and investments in local industries to attract foreign currencies and bolster the Cedi.

While Fitch Solutions projects a marginal strengthening of the Cedi by 1% against the US dollar in 2024, both Akomea and the Association agree that robust government intervention is critical to stabilize the currency and restore investor confidence. The current exchange rates, as of April 23, 2024, show the Cedi trading at GHS13.15 to buy and GHS13.66 to sell against the US dollar, with similar fluctuations against other major currencies like the British Pound Sterling and Euro.

Why this matters: The stability of the Ghanaian Cedi is crucial for the country's economic health and investor confidence. The government's response to the currency's depreciation will have significant implications for businesses, consumers, and Ghana's overall financial landscape in the lead-up to the 2024 elections.

Chartered economist Bernard Oduro Takyi, a member of the opposition National Democratic Congress, has challenged the accuracy of the cedi-dollar exchange rate presented by Finance Minister Dr. Mohammed Amin Adam to the International Monetary Fund. Oduro Takyi contested the minister's claim of an exchange rate of GHC11 to USD1, stating that the actual rate was GHC13.5 to USD1. He accused the government of presenting misleading information to portray the economy in an unduly favorable light and called for a more comprehensive approach to managing the economy.

Key Takeaways

  • Ghanaian Cedi has depreciated 11% against USD since start of 2024.
  • Forex Bureaux cite election spending as cause of Cedi's decline.
  • Fitch projects 1% Cedi strengthening in 2024, but robust govt action needed.
  • Cedi trading at GHS13.15 to buy, GHS13.66 to sell against USD as of April 23.
  • Opposition economist challenges govt's claim of GHS11 to USD1 exchange rate.