Finance Minister-designate, Dr Cassiel Ato Forson, has vowed to coordinate effectively with the Bank of Ghana to stabilise the cedi and ensure its sustainability.

Speaking at his vetting before Parliament’s Appointments Committee on Monday, January 13, Dr Forson outlined his strategy for managing the country’s currency and addressing Ghana’s debt challenges.

Dr Forson acknowledged the significant impact of the cedi's depreciation on the economy, noting that approximately 90% of Ghana’s external debt increase can be attributed to currency depreciation.

"As long as you borrow in foreign currencies, any depreciation of the cedi will directly impact the debt figures," he explained.

He emphasised the shared responsibility between the Ministry of Finance and the Bank of Ghana in managing and stabilising the cedi.

“When approved as Minister, I will work or coordinate effectively with the central bank so that together, we can anchor the currency,” Dr. Forson pledged.

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Dr Forson stressed the need for better coordination between fiscal and monetary policies to stabilise the economy, noting that while the Central Bank is tasked with managing currency stability, the fiscal behaviour of the Ministry of Finance can either positively or negatively affect monetary outcomes.

“As a government, we must act responsibly. The Ministry of Finance and the Central Bank must work in harmony to stabilise the currency and prevent unnecessary shocks to the economy,” he noted.

Criticism of past debt management

Dr Forson also criticised the previous government’s approach to debt reporting, highlighting the exclusion of certain liabilities, such as the ESLA Bond, Sinohydro loan, and Daakye Bond, from official public debt figures.

He recounted that these omissions led to inconsistencies that had to be corrected when Ghana entered the International Monetary Fund (IMF) programme.

“We in the NDC felt vindicated when these debts were finally included in the public debt figures. However, we view this as a lesson to improve transparency,” he stated.

To address these issues, Dr Forson reiterated the National Democratic Congress' commitment to establishing an independent Debt Management Office, adding that “This will ensure transparent and accurate debt reporting, avoid past mistakes, and enhance fiscal discipline."