President John Dramani Mahama has described as unrealistic the call by some Ghanaians for the US dollar to be exchanged at GH¢1, warning that such an extreme appreciation of the cedi could seriously harm Ghana’s economy.

Speaking during a high-level presidential session at the 60th Annual Meeting of the African Development Bank (AfDB) and the 51st Annual Meeting of the African Development Fund (ADF) in Abidjan, President Mahama cautioned against setting unattainable currency goals.

“Some people say it will come to GH¢1 to $1. No, that's extreme. We'll eventually collapse our export sector if that happens,” he stated.

President Mahama explained that while the strengthening of the cedi has delivered some economic benefits, including a significant reduction in Ghana’s debt, overly aggressive appreciation could disrupt key sectors, particularly exports.

He revealed that the recent appreciation of the cedi has helped reduce the country’s total debt by GH¢150 billion and projected that Ghana could meet its debt sustainability target well ahead of schedule.

“If that trajectory continues, the target of reaching 55 to 58 percent debt sustainability by 2028 will be achieved by the end of this year. That gives us the fiscal space to begin investing in the most productive sectors of the economy,” he said.

Over the past four months, the cedi has appreciated by 24.1% against the US dollar, a development driven by sound fiscal management and strong global commodity prices.

Mahama highlighted the link between a weaker cedi and rising debt levels, stressing the importance of maintaining a stable currency to ensure effective debt control.

He reaffirmed his administration’s commitment to restoring economic stability and fostering growth, with a focus on key reforms.

“We need to look inward, boost domestic revenue, cut wasteful government expenditure, fight corruption, and introduce stronger accountability in governance. That is the focus of my administration,” the President concluded.