Although the Ghana cedi’s recent strong performance against the United States dollar is a welcome development, it is not sufficient to drive Ghana’s economic recovery and growth, according to Professor Isaac Boadi, Executive Director of the Institute of Economic Research and Public Policy.
Contributing to recent discussions on the cedi’s gains against the US dollar, Professor Boadi stated that a weak dollar alone is not enough and that more needs to be done.
“The cedi’s rebound against the US dollar, fueled by gold, debt relief, and a $490 million lifeline, is a welcome respite. But let’s be clear—a weak dollar is not a sustainable strategy,” he stated.
“Emerging markets like Ghana cannot outsource their stability to global luck. We need to go beyond what the global economic crisis hands us and solidify our gains with pragmatic policies and programs,” he added.
“Without homegrown policies—particularly real structural reforms, curbing reckless spending, boosting local production, and slashing import dependency—this recovery will be a nine-day wonder,” Professor Boadi further explained.
He emphasized that although the cedi’s recovery against the US dollar is heartening, the government must tread cautiously with its short-term expenditure, as the gains made so far are, at best, artificial.
The Dean of the Faculty of Accounting and Finance at the University of Professional Studies, Accra (UPSA), Professor Boadi described the government’s celebrations as premature and cautioned that if global market conditions improve, the US dollar could rebound and erode the cedi’s recent gains.
JKB/KA
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