Cedi depreciated by 53.8% in 2022 – Ofori-Atta

Cedi depreciated by 53.8% in 2022 – Ofori-Atta

Finance Minister, Ken Ofori-Atta has said Ghana’s foreign money lost its worth against the key buying and selling currencies by 53.8% for the reason that starting of 2022.

This, he said is against the typical 7% annual depreciation between 2017-2021.

Presenting the 2023 Budget in Parliament on Thursday, the Minister said the uncontrolled demand for imports and overseas change accounted for the discount in worth of the cedi.

“The demand for foreign exchange to support our unbridled demand for imports undermines and weakens the value of the cedi. This contributed to the depreciation of the Cedi which has lost about 53.8% of its value since the beginning of this year, compared to the average 7% annual depreciation of the Cedi between 2017 and 2021.”

He noted that the cedi depreciation has critically affected the Ministry’s means to successfully handle the country’s debt which has elevated by ¢93 billion this year alone.

Mr. Ofori-Atta, nevertheless, added that the Bank of Ghana will proceed to monitor inflation developments and reply appropriately to include worth pressures.

According to him, the Monetary Policy Committee will concentrate on utilizing the financial policy fee to, amongst others, include inflationary pressures.

He said the provisional figures point out that whole public debt at the top of September 2022 stood at ¢467.37 billion ($48.87 billion), representing roughly 75.9% of the Gross Domestic Product.

The improve in the debt, he noted is essentially due to exogenous elements.

“Mr. Speaker, the external debt as a percentage of the total debt stock is 58.1 percent as at end of September 2022. The sharp growth in the external debt stock is largely driven by the depreciation of the local currency. The depreciation of the Ghana cedi added GH¢93,855.15 million to the external debt stock.”

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Credit: myjoyonline

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