
Audio By Carbonatix
Professional services firm, Deloitte, is predicting a slowdown in the depreciation of the cedi to continue for the rest of the year.
This is primarily due to the expected inflows of forex from the International Monetary Fund (IMF) programme and the World Bank Development Policy Operation (DPO) funding.
The Economist Intelligence Unit also noted that the relative slowdown in depreciation can be largely attributed to improved foreign-exchange liquidity and a strong and growing current-account surplus.
However, Deloitte warned that the declining cocoa production is a major risk to exchange rate stability.
It therefore wants the government to address the declining cocoa production to help boost the country’s forex reserves and reduce the foreign exchange demand pressure.
“Whilst we acknowledge the various policy interventions intended to mitigate our FX risks (i.e. streamlining gold sales through the GoldBod, intensifying forward FX [foreign exchange] auction, reducing public spending and budget deficit, and prioritising import substitution), we have identified the declining cocoa production as a major issue that must be addressed to also help in boosting our forex reserves and reducing the FX demand pressure”.
In 2024, the Ghana cedi lost about 19% in value to the US dollar. It also depreciated by 17.80% to the pound and 13.70% to the euro.
Latest Stories
-
Bawumia donates relief items to June 29 flood victims
17 minutes -
ICC confirms Burkina Faso, Mali and Niger move to leave court
1 hour -
Switzerland beat Algeria for first World Cup knock out win in 88 years
1 hour -
A case for entrusting public sector waste management to the Ghana Armed Forces
2 hours -
Oil up slightly ahead of long US weekend as peace efforts hold
2 hours -
Ghana Platinum Excellence Award launched to honour institutions with over 20 years of impact
3 hours -
Floods are killing Ghana’s economy one traffic jam at a time – Prof Peter Quartey
3 hours -
Abu Jinapor calls for Mahama-Ramaphosa intervention as Ghana-South Africa diplomatic tensions deepen
3 hours -
We are wasting money – Prof Peter Quartey says Ghana is paying billions for failure to prevent floods
3 hours -
Mali creates state body to regulate artisanal gold trade
3 hours -
Air Force to investigate officer who called for Trump impeachment
3 hours -
National Day of Prayer and Thanksgiving an annual national observance, not a response to floods – Elvis Afriyie-Ankrah
3 hours -
India issues notice to Telegram, Signal on concerns over usernames, source says
4 hours -
You can’t trade lives for fiscal discipline – Oppong Nkrumah blasts government over flood deaths
4 hours -
Flood disaster must spur urgent action, government should fast-track relief – CPS
4 hours