GITFiC Raises Concerns Over Ghanaian Cedi Depreciation Despite Government Interventions

The Ghana International Trade and Finance Conference (GITFiC) is sounding the alarm on the continuous depreciation of the national currency, despite the government's multiple interventions. Despite a strong economic performance in 2023, the Ghanaian Cedi saw a slight dip in the first quarter of 2024. GITFiC attributes this trend primarily to increased profit repatriation by foreign-owned companies, fueled by market speculation. This ongoing scenario is putting considerable downward pressure on the Ghanaian Cedi.

While the former Minister of Finance, Ken Ofori-Atta, recently announced a $200 million injection into the economy, GITFiC remains skeptical. They argue that such announcements often have limited impact, as market operators anticipate them and adjust their projections beforehand, even before the funds are actually deployed. Consequently, GITFiC suggests that this approach might be counterproductive in addressing the currency depreciation issue.

Facing these challenges, GITFiC advocates for a more targeted and proactive strategy. They propose that the Bank of Ghana swiftly inject foreign exchange into the economy, focusing on specific sectors to alleviate pressure on the Ghanaian Cedi. Moreover, GITFiC emphasizes the crucial role of the Central Bank in combating irregularities in the forex market. They recommend that the Bank intensifies efforts to identify and eliminate questionable forex operators, tightens regulatory frameworks, and ensures strict compliance across all market participants. By implementing these measures, GITFiC believes that the Ghanaian government can effectively tackle the ongoing currency depreciation and stabilize the local economy.