As the Bank of Ghana’s Monetary Policy Committee (MPC) prepares to convene on September 15, analysts and market watchers say the sharp depreciation of the cedi must dominate discussions.
The local currency, which appreciated strongly in the second quarter with gains of about 43%, has reversed course, shedding nearly 13% in the third quarter. The cedi is now trading above GH₵12 to the dollar on the interbank market, well outside the GH₵10–GH₵12 band earlier highlighted by former President John Dramani Mahama as a critical stability zone.
This sharp depreciation has reignited concerns among businesses and consumers alike. For companies, the sudden reversal complicates planning and projections, particularly for import-dependent sectors that now face rising costs for goods, raw materials, and services. For households, the weakening cedi translates into higher prices of imported commodities, transport fares, and utilities, deepening the cost-of-living pressures already felt by many Ghanaians.
With the last quarter of the year historically witnessing increased demand for foreign exchange due to festive-season imports and corporate transactions, expectations are high that the MPC will provide clear direction and assurance. Market players insist the Committee must demonstrate that the hard-won stability achieved earlier this year will not be completely eroded by current pressures.
Economists argue that stabilising the exchange rate is as critical as tackling inflation, as the currency’s volatility undermines investor confidence, trade competitiveness, and long-term growth. Many suggest that beyond short-term interventions, the MPC must outline measures that address structural demand for forex while reinforcing production and export growth.
The upcoming meeting, therefore, presents a crucial opportunity for the central bank to restore confidence, reassure businesses, and stem further losses in the currency. Anything short of that, experts warn, could see Ghana return to the free-fall days of the cedi, with devastating consequences for the economy.
