Justin Frimpong Kodua, General Secretary of the New Patriotic Party (NPP), has reiterated the ruling government’s capability to address the current depreciation of the cedi. He urged Ghanaians to place their trust in President Nana Addo Dankwa Akufo-Addo’s administration to reverse the adverse exchange rate trends.
Speaking during a panel discussion on Peace FM’s morning show ‘Kokrokoo,’ Kodua acknowledged the currency’s depreciation but expressed confidence in the government’s ability to stabilize it. “When the cedi started depreciating last year, we implemented measures to stabilize it. Even though it has started depreciating again, I assure you that we have the competent men to deal with it,” Kodua stated.
The depreciation of the cedi has raised concerns among Ghanaians, as it affects the cost of living and the overall economic stability of the country. The fluctuating value impacts businesses and consumers alike, leading to increased prices for essential goods and services.
Kodua’s comments reflect the NPP’s stance on economic management and their commitment to addressing the challenges posed by the currency’s depreciation. He reassured the public that the party has the expertise and strategies necessary to mitigate these effects and restore stability to the economy.
In related news, Finance Minister Dr. Mohammed Amin Adam also assured that the government is taking steps to stabilize the cedi. During the Monthly Economic Update Series in Accra, he noted that despite recent pressures, the local currency had been relatively stable. The depreciation rate against the US dollar halved from 54.2 percent at the end of November 2022 to 27.8 percent at the end of December 2023.
Dr. Adam highlighted that the cedi’s stability continued into 2024, with a cumulative depreciation of 14.2 percent as of May 20, compared to 20.7 percent during the same period in 2023. “We expect the cedi’s stability to improve in the medium term as we complete debt restructuring, progress on fiscal consolidation, and improve our reserves,” he stated.
The recent pressures on the cedi, he explained, are largely due to the strengthening of the US dollar against major trading currencies, seasonal forex demand, elevated demand from corporate institutions, payments to contractors and independent power producers, high cedi liquidity, and speculation.
To combat the currency depreciation, the government is fast-tracking fiscal consolidation processes through spending rationalization and revenue enhancement. Both Kodua and Dr. Adam’s assurances underscore the administration’s commitment to ensuring economic stability and growth.