The Ghanaian cedi’s recent gains against the US dollar have sparked optimism among economists, but they caution that sustained growth depends on maintaining high gold prices and tightening government spending.
Speaking on Channel One TV’s current affairs program, The Point of View, economist Dr. Theo Acheampong warned that without disciplined policy action, the cedi’s appreciation could be short-lived.
“If gold remains high for the rest of the year, I can confidently say the cedi will continue to gain against the dollar,” Dr. Acheampong said.
He emphasized the importance of the mid-year review in July, stating, “If we see improved fiscal numbers and stronger commitments to curbing expenditure—particularly in line with the budget presented in March—those positive signals will continue to feed into the foreign exchange market.”
Adjei Boateng, Chief Investment Officer at Black Stars Advisors, echoed Dr. Acheampong’s sentiments, stressing that currency stability is more valuable than short-term appreciation.
“Stability over a prolonged period is perhaps more valuable than short-term appreciation, because it brings predictability,” Boateng explained. “That allows businesses and individuals to plan with greater confidence.”
The Governor of the Bank of Ghana has also emphasized the importance of stabilizing the cedi over the next three to five years, which would allow for better economic planning. Mr. Boateng added that the current momentum presents an opportunity to ease Ghana’s external debt burden.
“If we’ve built up reserves, perhaps we could channel some of that into reducing external debt. That would help lower our interest payments and free up fiscal space for other priorities,” he noted.
As Ghana navigates its economic growth, experts agree that maintaining high gold prices and fiscal discipline are crucial to sustaining the cedi’s gains and supporting broader economic development.