Finance Minister Ken Ofori-Atta has assured that the Ghanaian Cedi is poised to withstand exchange rate shocks and will maintain its strength in the coming year.
According to Mr. Ofori-Atta, the exchange rate is anticipated to remain steady, and that there won’t be any significant depreciation of the local currency.
During the presentation of the 2024 Budget statement and economic policy of the government, the minister emphasised that the Cedi’s robustness will be supported by the IMF Supported Programme and anticipated inflows from the cocoa syndication loan.
However, Ken Ofori-Atta acknowledged that only geopolitical tensions and volatility in commodity markets could pose a challenge to this optimistic outlook.
“In the outlook, the external sector’s performance will largely depend on the conclusion of negotiations with the country’s external creditors. Also, the Bank of Ghana’s policy thrust will remain focused on increasing external buffers through sustainable means.”
“The exchange rate is expected to remain stable supported by continued progress with the implementation of the IMFSupported Programme, expected inflows from the cocoa syndication loan, the second tranche of the IMF loan, mining inflows, and the BoG’s continuation of the Gold-for-Oil Programme.
“The he main risks to the external outlook include increasing uncertainty about geopolitical tensions and volatility in commodity prices.”