"It's Eroding The Cedi": Finance Minister Urges Ghanaians To Cease Panic Buying Dollars

"It's Eroding The Cedi": Finance Minister Urges Ghanaians To Cease Panic Buying Dollars

  • Dr Mohammed Amin Adam, the finance minister, is urging Ghanaians to halt their panic buying of dollars
  • He said the panic buying is further exacerbating other external and internal pressures on the cedi resulting in its freefall
  • He said government has instituted several measures to boost the cedi, but the results would not be realised till the panic buying stops

The Minister for Finance Dr Mohammed Amin Adam has cautioned Ghanaians against the panic-buying of dollars from the foreign exchange market.

He attributed the free fall of the cedi to the rush for dollars.

Finance Minister Urges Ghanaians To Cease Panic Buying Dollars
The Finance Minister says the panic buying of dollars is weakening the cedi.
Source: Getty Images

He said the panic-buying of dollars and other foreign currencies as a store of value is eroding the gains made by the cedi following the injection of much needed foreign exchange by the International Monetary Fund at the start of the debt bailout programme.

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He said the situation is further exacerbating the pressure put on the local currency by the strengthening dollar as well as other factors.

He said while the government is implementing robust measures to ensure the continued stability of the currency, the rush for foreign exchange must cease to allow for these interventions to work.

Dr Amin Adam assured Ghanaians that about $2.32 billion will flow into the country from sources including the IMF, the World Bank, the government’s Gold-for-Oil- policy, the Bank of Ghana gold reserves programme, among others, to prop up the cedi.

“There is no need to rush and buy forex,” the Finance Minister declared.

Dr Amin Adam was optimistic that the cedi would remain stable against the dollar in the medium term as the government wraps up its debt restructuirng programme, improves its fiscal consolidation and improves the country’s reserves.

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He said his ministry is working closely with the central bank to implement measures to address the year-on-year depreciation of the Cedi.

Some of the measures include fast-tracking fiscal consolidation, intensifying the Gold-for-Oil and Gold Reserves programmes, and strategic foreign exchange interventions by the central bank.

Ghana to secure third tranche of IMF bailout money

YEN.com.gh reported that Ghana is on track to secure board approval from the third tranche of $360 million out of its $3 billion IMF support.

The government's support programme is said to be showing better-than-expected results.

Ghana has received $1.2 billion in IMF funding so far and is nearing the approval process for the next disbursement.

Julie Kozack, the IMF's Director of Communications, said Ghana is gaining more confidence and support from the IMF.

Ghana is expected to get approval for its third tranche of $360m when the IMF Executive Board meets in June.

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The government is not expected to implement additional adjustments by the IMF.

The government has expressed optimism that ongoing discussions among official creditors will facilitate the conclusion of talks, enabling the release of the third tranche of funds.

Proofread by Berlinda Entsie, journalist and copy editor at YEN.com.gh

Source: YEN.com.gh

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Cornerlis Affre (CA and Politics Editor) Cornerlis Kweku Affre is at present a Current Affairs Editor at Yen.com. He covers politics, business, and other current affairs. He has worked in various roles in the media space for at least 5 years. You can reach out to him at cornerlis.affre@yen.com.gh