The Executive Director of the Institute for Energy Policies and Research (INSTEPR), Kwadwo Poku, has warned that Ghana’s bid to hold down the cedi’s value is beginning to hurt government revenue, especially from import duties at the ports.
Mr. Poku said the Bank of Ghana (BoG) and the Ministry of Finance are using vast resources to defend the cedi at a level that does not reflect real market conditions, a move he believes offers short-term relief but long-term pain.
“Since the FX value has been made low, it’s also affecting GRA’s receivables from the ports,” he said, explaining that import duties are being calculated at an artificially low rate, cutting into the government’s revenue base.
He argued that the cedi’s current rate against the dollar is being kept below its natural value, which he placed between GH¢12.40 and GH¢12.50 per dollar. Keeping it lower than that, he warned, risks widening what he described as a $21 billion hole in the national budget.
“It has never been the case where the Bank of Ghana is doing the semantics they are doing to forcefully keep the dollar at a certain price when in reality we know they are using a lot of resources to do that,” he added.
Speaking later on JoyNews’ AM Show, Mr. Poku said while the move has temporarily eased fuel prices, with petrol and diesel seeing marginal declines this week, the impact will not last if the exchange rate is not allowed to reflect market forces.
He urged authorities to be more transparent in managing the exchange rate and petroleum pricing, warning that masking the true value of the cedi could distort fiscal planning and undermine investor confidence.
