Bawumia Missing in Action as Gov’t Inaugurates a 50-Member Committee to Stop the Cedi Depreciation

In the attempt to forestall further depreciation of the GHC, the government has inaugurated a committee to investigate the causes and propound corrective solutions to them.

Named the FX Development Committee, this endeavor is a fulfillment of a promise made by the finance ministry last year to constitute a bi-partisan committee to look into the problem and help address it.

The Deputy Finance Minister of Finance, Charles Adu Boahen, at the inauguration, stated that the FX Development Committee is not usurping the powers of the central bank.

He said the committee will complement the efforts of the Bank of Ghana in curtailing the usual poor performance of the cedi against other major foreign currencies.

“The formation of this committee is not to infringe on the independence of the central bank in its foreign exchange operations,” he said.

The Deputy Minister explained that the committee will also review the current forex regime, identify the inherent constraints in the system and offer workable alternatives by way of policies and programmes which potentially would reduce FX risks in the economy.

“The committee is also to critically look at the role of automation and digitization as a critical enabler of FX reforms,” he stated.

The cedi last year depreciated by more than 12.7 percent, the worst performance since 2015 when the cedi depreciated by more than 14.6 percent.

Chaired by the Finance Minister, Ken Ofori-Atta. The members of the committee are drawn from the Office of the Vice President, Bank of Ghana, Agriculture Ministry, Ghana Union of Traders Association (GUTA), Association of Ghana Industries, some universal banks among other key stakeholders.