The Minister of Finance, Dr Cassiel Ato Forson, has assured stakeholders that the recent appreciation of the Ghanaian cedi is not a fleeting development but the result of deliberate and strategic economic management.
In post on X after meeting with the leadership of the Food and Beverage Association of Ghana (FABAG), he reiterated the government’s commitment to maintaining the cedi’s stability and strength.
“I want to use this opportunity to assure all of you that the appreciation of the cedi will not only continue but will be sustained,” he stated.
Dr Forson explained that the positive trend was underpinned by sound economic planning and strategic interventions.
“The stability and appreciation you are witnessing is not a knee-jerk reaction; it is the product of careful, well-thought-out planning,” he noted.
In recent weeks, the cedi has recorded significant gains against major trading currencies.
The interbank rate currently stands at GH¢13.29 to the US dollar, a notable improvement from over GH¢16 earlier this year.
In a related development, the Centre for Policy Scrutiny (CPS), has cautioned that the impressive run might be more fragile than it appeared, and urged urgent structural reforms to make the gains sustainable.
In its new policy discussion paper by the CPS, titled ‘Ghana’s Cedi Holds Steady – But Can the Calm Last?’, it said the cedi’s appreciation rising from GH¢15.50 to the U.S. dollar in mid-April to GH¢13.30 by May 7 had been underpinned by both global and domestic factors, including a weakening U.S. dollar, improved gold and international reserves, reduced government spending, and investor optimism.
The think tank argued that these drivers might not be sustainable in the medium to long term unless backed by deeper economic reforms.
“The cedi’s recent appreciation is encouraging, but many of the factors behind it such as lower debt servicing and constrained public expenditure are temporary,” the paper noted.
It said “Without comprehensive structural policies, the cedi’s strength may be short-lived.”
A strong cedi it said also appeared to be aiding the inflation fight adding that imported inflation had been easing, contributing to a downward trend in overall inflation since January.
“Ghanaians may begin to see some cost-of-living relief,” it said.
International investors are also taking notice. With gross international reserves rising to $9.4 billion as of March—up from $6.2 billion a year prior Ghana is viewed as a more stable and creditworthy destination for capital.
Despite the current optimism, the CPS warned that the cedi’s newfound strength was not without consequences or risks.
A stronger currency, it said, could harm export competitiveness by making Ghanaian goods more expensive abroad.
“There is also the risk of import surges, which could undermine local industries and widen the trade deficit,” it said.
BY TIMES REPORTER
