Dr. Ato Forson Pledges to Tackle Cedi Depreciation, Sets Target of 8%

Dr. Cassiel Ato Forson, Ghana’s Finance Minister-designate, has pledged to significantly reduce the depreciation of the country’s currency, the cedi, to just 8% in the shortest possible time.

This ambitious target was outlined during his vetting before the Appointments Committee of Parliament on Monday, January 13.

“We intend to reduce depreciation to 8% in the shortest time,” Dr. Forson said, stressing that stabilizing the local currency would be a top priority for his administration.

The current rate of depreciation has caused significant concern, with the cedi losing about 20% of its value against the dollar in 2024 alone.

Dr. Forson acknowledged the importance of taking swift action to restore confidence in the currency and address its underlying issues.

To achieve this target, Dr. Forson proposed a comprehensive strategy that includes increasing the country’s foreign exchange reserves, boosting export revenues, and curbing unnecessary imports.

These measures, he believes, will not only reduce the cedi’s depreciation rate but also improve the broader economic outlook of the country.

“We will work on improving foreign exchange reserves and explore other avenues to increase the revenue from exports. I

n addition, we need to control imports that are unnecessary, as this will help curb the outflow of foreign currency,” Dr. Forson explained.

These efforts, according to him, would help stabilize the currency and create a more sustainable economic environment.

Dr. Forson expressed his commitment to addressing the root causes of currency instability, which include fluctuating market demand, poor foreign exchange liquidity, and corporate demand for dollars.

He reassured the Committee that he was ready to collaborate with relevant stakeholders to implement effective solutions.

The cedi’s performance has been a source of concern for many Ghanaians. As of January 2025, the currency has already depreciated by 1.27% against the dollar, despite a brief period of recovery following the holiday season.

In the last week of 2024, the cedi lost 0.48% to the dollar, with a mid-rate of GH¢15.68 to $1.

Dr. Forson’s plan to bring the depreciation rate down to 8% offers hope to many, as it signals a more stabilized and controlled approach to managing the country’s currency and economy in the coming years.