* Ghana's currency has fallen 7 pct in 2014
* Fall in cedi alarms importers, tempers economic optimism
(Adds quote from finance minister, detail)
ACCRA, Feb 11 (Reuters) - New measures by Ghana's government to stabilize the cedi currency, which has fallen sharply this year, will take time to take effect and inflation may rise further in the short term, Finance Minister Seth Terkper said on Tuesday.
Inflation hit a fresh 3-year high in December to stand at 13.5 percent, while the cedi currency has fallen around 7 percent this year after a nearly 20 percent drop last year.
"Inflation might rise but it will find its level again," Terkper told reporters. "When we get out of the dry season it (inflation) will go down," he added, referring to a weather pattern which lasts until June.
The central bank last week announced new rules to tighten foreign exchange dealing including banning the use of the dollar for domestic transactions.
The drop in the currency has alarmed importers and ordinary Ghanaians, puncturing an air of optimism that has prevailed since 2010 when the West African state began producing oil and its GDP growth spiked to14 percent.
Many economists say the fall in the currency is a leading indicator of broader fiscal problems in a country that also exports gold and cocoa. They cite as examples a budget deficit expected to stand at 10.2 percent in 2013 and low import cover.
(Reporting by Matthew Mpoke Bigg; Additional reporting by Kwasi Kpodo; Editing by Emma Farge)
((matt.bigg@thomsonreuters.com)(+233)(0)(209 607-203)(Reuters Messaging: matt.bigg.thomsonreuters.com@reuters.net))
Keywords: GHANA ECONOMY
