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“There is Enough Forex in the System; Do not rush for It” – Finance Minister Cautions

The Minister for Finance, Dr. Mohammed Amin Adam, has reassured Ghanaians that there is sufficient foreign exchange in the system to meet the country’s needs cautioning the public against panic buying of forex, which can lead to unnecessary volatility in the exchange market.

This statement was made during his Monthly Economic Update on Friday, May 24, 2024.

“There is enough foreign exchange in the system, and we strongly advise against any rush to purchase forex out of panic,” he cautioned assuring the public that measures are in place to ensure a steady supply of foreign currency to meet legitimate demand.

According to the Minister, government’s strategic interventions have significantly boosted Ghana’s gross international reserves, which stood at $2.8 billion as of April 2024. This improvement, he attributed to the successful implementation of the Post Covid-19 Programme for Economic Growth (PC-PEG) and the support received from the IMF.

“Our gross international reserves have seen a notable increase, providing a buffer that supports the stability of our currency,” Dr. Adam noted.

He stressed the importance of maintaining calm and rational behavior in the forex market to avoid unnecessary disruptions stressing that panic buying of foreign currency creates artificial scarcity and leads to unwarranted depreciation of the cedi urging everyone to remain calm and trust in the measures government has put in place.

Addressing concerns about inflation and exchange rate fluctuations, the Finance Minister assured that the government is implementing robust policies to manage these challenges. He mentioned that inflation is on a downward trend, having decreased from a peak of 54.1% in December 2022 to 30% in April 2024. “We are committed to further reducing inflation to enhance the purchasing power of Ghanaians,” he said.

Dr. Amin Adam highlighted government’s multifaceted approach to ensuring economic stability, including efforts to restore fiscal and debt sustainability, stabilize inflation and the exchange rate, and preserve financial stability. He said these measures are all part of a broader goal to foster a stable and resilient economy that benefits all Ghanaians.