Dr Cassiel Ato Forson, the Minister for Finance has boldly declared he believes that the Ghanaian Cedi will do well.
According to Ato Forson, he has faith in the Cedi, based on the fundamentals and the work that they have done so far.
He asserted that the Mahama government is committed to maintaining a strong currency through sound economic policies and fiscal discipline.
Speaking in an interview with Channel One TV on Wednesday, 12 March, Ato Forson stated, “I have faith in the Cedi. I believe that the Cedi will do well based on the fundamentals and the work that we have done so far. I believe that the Cedi will perform well”.
Ato Forson’s comments come following the Bank of Ghana governor Dr Johnson Asiama warning that the recent decline in Treasury Bill (T-Bill) rates could lead to a depreciation of the Cedi.
The finance minister despite the concern insisted that the fundamentals of the economy, coupled with the measures implemented by the government, would sustain the Cedi’s strength.
Meanwhile, while delivering the 2025 budget to parliament, Ato Forson listed government measures to stabilise the exchange rate. They include establishing GoldBod, a scheme to increase foreign exchange reserves by leveraging Ghana’s gold resources to support the cedi. Continue the BoG’s foreign exchange forward auctions to provide stability to the currency market.
Undertaking strong fiscal consolidation, including reduced public sector spending and a lower fiscal deficit, to ease exchange rate pressures. And Promoting import substitution under the 24-Hour Economy Policy, boosting domestic production of key goods currently imported, thereby cutting down foreign exchange demand.
Some strategies to tackle inflation include, Implementing the Agriculture for Economic Transformation Agenda to boost food production and curb food price inflation. Introducing targeted policies to reduce the costs of essential items such as transport and utilities, which have a significant impact on inflation.
Strengthening fiscal consolidation efforts to reduce the fiscal deficit and government borrowing, will help lower inflationary pressures. Ensuring exchange rate stability will help control the cost of imported goods and fuel and support the BoG’s monetary policy stance and liquidity management interventions to sustain the disinflation process.
Meanwhile, on March 13, 2025, the Cedi is trading at GH¢16.10 to the US dollar.
The Pound Sterling is trading at GH¢20.90, while the Euro is trading at GH¢17.60 in the retail market.
