Policy think tank, the Africa Policy Lens (APL), has called on President John Dramani Mahama to provide clarity on how his government plans to restrict annual depreciation of the Ghana cedi to just 5 percent.
Speaking at his first Presidential Media Encounter at Jubilee House on September 10, President Mahama assured Ghanaians that his administration would ensure the local currency depreciates by no more than 5 percent per year.
“The Cedi is making an adjustment, and I believe it will settle at a certain rate. We will make sure that any depreciation remains within a margin of about 5 percent per annum,” Mahama told journalists.
He acknowledged that currency fluctuations are natural but warned that rapid depreciation creates economic instability. He pointed to the hardships businesses endured in 2024, when the cedi slid from GH¢12.46 to $1 in January to over GH¢15 by mid-year.
The 5 percent target, analysts say, represents a bold departure from recent trends. In 2022, the currency lost more than 40 percent of its value against the U.S. dollar, while earlier episodes of steep depreciation have historically undermined economic planning.
Mahama added that central bank interventions, including forex support measures, were designed to curb such volatility.
“Every country tries to find a balance where exporters are able to do good business and importers are not overburdened by high forex rates,” he said.
But in a statement issued after the media encounter, the Africa Policy Lens expressed skepticism. While acknowledging the president’s pledge as “reassuring,” the group described it as “concerning” and demanded transparency on how government intends to achieve the target.
“Exchange rates are driven by both endogenous and exogenous factors,” APL said.
“Exogenous factors, such as global crude oil prices or U.S. Federal Reserve policy, are beyond the control of local managers. A sudden increase in oil prices or U.S. interest rates could immediately weaken the cedi.”
The think tank further highlighted that falling prices of gold and cocoa, two of Ghana’s major export commodities would reduce foreign exchange inflows, limiting the Bank of Ghana’s ability to stabilize the market.
“It is therefore surprising to hear President Mahama state categorically that his administration plans to limit Ghana’s cedi depreciation to 5 percent annually.
How does the NDC government intend to achieve this? Which variables and models were used to arrive at such a conclusion? Ghanaians deserve transparency,” the statement said.
APL urged government to provide a clear roadmap, stressing that investor confidence and public trust hinge on realistic, evidence-based policy communication.
