2024 election-related jitters exerted pressure on Cedi – Addison

Governor Dr. Ernest Addison reported intermittent pressures on the Cedi in 2024, primarily due to energy-related payments, bond restructuring uncertainties, and election-related jitters.

By Q3, the Cedi had depreciated 24.8% year-on-year but recovered in Q4, closing the year with a 19.0% depreciation against the US dollar. Recovery was supported by tight liquidity, positive debt restructuring progress, and the gold purchase program.

The banking sector remained profitable, with assets growing by 33.8% in 2024. The Capital Adequacy Ratio (CAR) improved slightly, though non-performing loans (NPLs) rose to 21.8%. Dr. Addison emphasized the need to address high NPLs and recapitalize banks with solvency gaps.

While inflation remained high due to food price hikes, fiscal consolidation is expected to aid disinflation. The Monetary Policy Committee retained the policy rate at 27%. The external sector outlook remains favorable, supported by robust gold exports.