Former President John Dramani Mahama has assured Ghanaians that the Bank of Ghana is fully committed to keeping the exchange rate within a sustainable and realistic range, warning that any drastic appreciation of the cedi could negatively impact the economy—particularly the export sector.

Speaking on recent developments in the foreign exchange market, Mahama noted that the cedi’s ongoing appreciation is being closely monitored by the central bank. He emphasized that although the local currency has gained significant ground, a dramatic drop—such as a GH¢1 to $1 exchange rate—would be harmful rather than beneficial.

“I don’t envisage, as some people are saying, that the rate will drop to one cedi to the dollar. No, that’s extreme. That would virtually collapse our export sector if it happens,” Mahama cautioned.

He expressed confidence in the Governor of the Bank of Ghana and his team, stating they are prepared to step in if the exchange rate falls below acceptable thresholds.

“If it falls below a certain floor, I’m confident the Bank will intervene to ensure it remains within a band that reflects the true value of the cedi against other currencies,” he added.

Addressing Ghanaians and forex holders directly, Mahama advised against panic, assuring the public that the current movements in the exchange rate are based on solid market fundamentals and not artificial manipulation.

“If you haven’t yet exchanged your dollars, I don’t know how much further down it will go, but the Governor is monitoring things closely, and we’ll see how it unfolds,” he said.

The cedi has been appreciating steadily in recent weeks and is now trading below GH¢11 to the US dollar on the interbank market. Mahama attributed this trend to effective coordination between fiscal and monetary policies led by the Bank of Ghana and the Ministry of Finance.

Explaining the mechanics behind the cedi’s strength, Mahama pointed to the Bank of Ghana’s forex auction system:

“It’s based on the forex auction system and the dynamics of demand and supply. The Bank of Ghana conducts a forex auction to determine how much cedis in the system require foreign exchange for payments. Those who need forex place bids in the auction. The Bank then strikes an average, collects the cedis, and allocates the corresponding dollars.”

He stressed that the current exchange rate reflects market realities, not policy manipulation.

“The current rate reflects the results of the auction and market demand. I believe the rate will settle where the true value of the cedi lies, based on supply and demand,” Mahama concluded.