President John Dramani Mahama has cautioned that Ghana’s export sector could face serious disruption if the local currency appreciates to the point where one Cedi equals one US dollar.
Speaking at a multi-sectoral meeting on the 24-Hour Economy Policy at the Jubilee House, President Mahama said the government is closely monitoring the exchange rate, with the Bank of Ghana poised to intervene if the cedi appreciates beyond sustainable levels.
“The cedi has recently appreciated in value due to strong coordination between fiscal and monetary policy—the Ministry of Finance and the Bank of Ghana,” President Mahama said.
He stated that the central bank uses a forex auction system to manage currency stability, allowing the market to determine the cedi’s real value based on supply and demand.
“The Bank of Ghana conducts forex auctions, assesses how much cedis are in the system for forex-related payments, and strikes an average rate from the bids. That’s how the dollar supply is allocated,” he said.
President Mahama cautioned against expectations that the cedi will strengthen further to achieve parity with the US dollar, describing such projections as extreme.
“I don’t envisage the rate reaching one cedi to a dollar. That would be extreme—and it would virtually collapse our export sector. But I believe the Bank of Ghana governor has an eye on it and will intervene if necessary to keep the exchange rate within a realistic band,” he said.
He urged the public not to panic over the cedi’s appreciation and hinted that any drastic movements would be addressed by the central bank.
“If you haven’t changed your dollars already, I don’t know how much further lower it will go. But the governor is watching, and we’ll see how things go,” he added.
His remarks come as the cedi shows signs of strength, buoyed by improved fiscal discipline, forex inflows, and targeted policy coordination.
