Chief Investment Officer at Black Stars Advisors, Adjei Boateng, says that while the recent appreciation of the Ghanaian cedi is welcome, long-term currency stability is far more critical for business and economic planning.
Speaking on Channel One TV’s The Point of View, Boateng emphasized that predictability in the exchange rate is what ultimately matters most for investors and businesses looking to make long-term decisions.
“Stability over a prolonged period is perhaps more valuable than short-term appreciation, because it brings predictability. That allows businesses and individuals to plan with greater confidence,” he explained.
Boateng noted that the Bank of Ghana’s strategy aligns with this perspective, pointing to recent remarks by the central bank’s Governor.
“The Governor of the Bank of Ghana also highlighted this recently, his preference is to stabilize the cedi over the next three to five years. That kind of environment allows for better economic planning at all levels,” he said.
Looking beyond exchange rates, Boateng also highlighted an opportunity presented by the current macroeconomic momentum: the potential to address Ghana’s external debt burden.
“If we’ve built up reserves, perhaps we could channel some of that into reducing external debt. That would help lower our interest payments and free up fiscal space for other priorities,” he added.
For Boateng, the cedi’s recent gains are encouraging, but he believes lasting economic benefits will only come if those gains are converted into a stable, reliable currency environment that supports sustained growth and better fiscal management.
