Finance Minister. Ken Ofori-Atta, has hinted that the traditional Cocoa Syndication Loan, expected in the last quarter of 2022 which will promote the cocoa sector, will further help the country build strong foreign exchange reserves and consequently provide a strong buffer for the cedi in the last quarter of the year.
This is expected to calm fears in foreign exchange market about the probability of further rapid depreciation of the cedi.
Joy Business understands that the loan used to finance cocoa purchases from farmers will be signed by Friday, September 30, 2022.
Speaking at a media briefing, Mr. Ofori-Atta said the Bank of Ghana has introduced enhanced measures such as a Special Foreign exchange auction for bulk distribution companies and a Gold Purchase Programme to contain the depreciation of the cedi, which is now slowing down.
The dollar is currently going for about ¢10.30 in the retail market.
It has slowed down compared to the months of July 2022 and August 2022 when it assumed a free fall.
But there are concerns that the high demand for the American ‘greenback’ will go up again in the last quarter of 2022 when traders will be undertaking imports for the Christmas festivities.
However, the Finance Minister is optimistic the cedi’s situation will be contained, based on the measures implemented so far.
Pan African bank, Absa, earlier this week projected a further fall in the value of the cedi to an end-year rate of about ¢12 to a US dollar.
In its Sub-Saharan Africa Daily report, it said the dollar will be under persistent demand which will weaken the cedi.
