DR Cassiel Ato Forson, the Finance Minister-designate, has announced plans to reduce the country’s currency depreciation rate to 8 per cent within the shortest possible time.
He made this statement yesterday, January 13, during his vetting before the Appointments Committee of Parliament.
“We intend to reduce depreciation to 8 per cent in the shortest time,” Dr Forson said.
He explained that achieving this target would require implementing a comprehensive strategy to stabilise the economy and restore confidence in the local currency.
Dr Forson outlined several measures to address the issue, including enhancing foreign exchange reserves, boosting export revenues, and curbing unnecessary imports.
According to him, these interventions would not only reduce depreciation but also improve the
overall economic outlook.
The Finance Minister-designate emphasised his commitment to addressing the root causes of currency instability.
He assured the Committee of his readiness to work with stakeholders in order to create a sustainable economic environment that promotes growth and benefits all Ghanaians.
The annual rate of depreciation has been around an average of 23 per cent.
At the end of 2024, market data shows it lost about 20 per cent of its value against the dollar.
The Ghana cedi lost 0.48 per cent to the dollar last week, increasing its year-to-date loss to 1.27 per cent with just 13 days into 2025.
This is due to prevailing corporate demand and poor foreign exchange liquidity, as the Bank of Ghana’s daily forex auctions took a breather post-yuletide season.
The local currency closed at a mid-rate of GH¢15.68 to one American greenback. It also depreciated by 0.62 per cent to the euro, while it gained 0.26 per cent versus the pound.
It began this week, going for GH¢15.85 to one American greenback.
Dr Forson also expressed concerns about the current tax exemption regime, describing it as opaque and prone to favouritism.
He called for greater transparency and fairness in the application of tax exemptions.
“My problem with tax exemptions is the opaqueness and favouritism,” Dr Forson stated.
He noted that the lack of clarity in the process undermines public confidence and creates opportunities for abuse.
According to him, such practices hinder the nation’s ability to mobilise adequate revenue for development.
Additionally, Dr Forson emphasised the need to reform the tax exemption framework in order to ensure it is both equitable and beneficial to the country.
“Tax exemptions should be granted based on clear, transparent, and merit-based criteria,” he argued.
He further indicated that addressing these issues would be a priority should his nomination be approved.
The Finance Minister-designate also underscored the importance of balancing revenue mobilisation with fostering a business-friendly environment.
He assured the Committee that under his leadership, efforts would be made to streamline the exemption process while maintaining fairness and accountability in the nation’s financial policies.
