The Institute of Economic Affairs (IEA) has issued a cautionary statement, warning that the recent appreciation of the Ghanaian Cedi may be short-lived unless the government takes bold steps to boost local production and promote export-led growth.

At a press briefing in Accra on Tuesday, May 27, 2025, IEA Fellow Professor Vladimir Antwi-Danso urged policymakers to shift focus from short-term currency stabilization measures to long-term economic transformation. He emphasized the importance of strengthening domestic productivity and industrial competitiveness, especially in export-driven sectors.

“Our forex appreciating and the Cedi appreciating is not the final solution,” Prof. Antwi-Danso said. “We need to become an export economy. That is the only sustainable way to stabilize our currency. Without it, we’re merely applying temporary fixes.”

He added that without deeper structural reforms, Ghana risks reversing the gains made in recent months. “We will relapse. By December, I believe we could see renewed depreciation. This is a technical forecast, not a political statement. It’s not yet time to celebrate.”

Meanwhile, the Governor of the Bank of Ghana, Dr. Johnson Asiamah, has dismissed suggestions that the Central Bank is artificially supporting the Cedi through direct intervention in the foreign exchange market.

Speaking at the Ghana CEO Summit on Monday, May 26, 2025, Dr. Asiamah credited the Cedi’s recent appreciation—24.1% against the US dollar—to sound economic management rather than market manipulation.

“Let me be clear: the Bank of Ghana is not using international reserves to prop up the currency. This appreciation is not engineered—it’s the result of improved fundamentals,” he explained.

Dr. Asiamah highlighted several contributing factors to the currency’s strength, including disciplined monetary policy, targeted foreign exchange reforms, increased remittance inflows, and enhanced market surveillance.

“These are not temporary interventions; they are part of a long-term strategy to ensure macroeconomic stability,” he noted.