Financial analyst Toma Imihere has attributed Ghana’s recent exchange rate stability to a mix of the government’s gold trade programme, stronger fiscal discipline, and renewed market confidence.
Mr. Imihere said Ghana’s decision to leverage its gold reserves had provided meaningful relief to the economy.
“To some extent, I feel that the gold has an effect on the exchange rate. It is not like they reinvented the wheel, but going for gold is the right thing to do,” he noted.
Mr. Imihere also credited the government for tighter control of public finances, stressing that fiscal responsibility has supported the cedi’s performance compared to past years.
“Fiscal discipline does have a major effect on the exchange rate. This one, you must give it to this government because they are more disciplined fiscally than the previous government. So, that has had some effect on the exchange rate,” he said.
Beyond economic policy, he underscored the role of confidence in shaping exchange rate outcomes.
When businesses and individuals trust that foreign exchange will be available when needed, they are less inclined to hoard dollars, which reduces pressure on the cedi.
He further observed that while the Bank of Ghana’s interventions had previously been criticized for being unsustainable, they nonetheless played a role in building short-term trust.
“When there is confidence, people will not resort to hoarding the dollar,” he explained.
Mr. Imihere argued that the present exchange rate figures reflect real market conditions, describing them as “more realistic” than in previous years.
