Dr. John Kwakye, Director of Research at the Institute for Economic Affairs (IEA), has expressed his deep concerns over the continuous depreciation of the Ghanaian cedi.
In a tweet on his official account, the seasoned economist lamented the worsening state of the currency, drawing attention to the sharp decline it has experienced in recent times. “Kwame Nkrumah’s cedi is crying for help!” he exclaimed, encapsulating the frustration many Ghanaians feel about the country’s economic course.
According to Dr. Kwakye, the cedi’s depreciation, which has fallen by 22% against major international currencies this year, is alarming. He challenged the narrative that the cedi is stable, emphasizing that such a huge drop contradicts any notion of stability.
“How can a currency that has depreciated by 22% be described as stable?” he questioned.
His concerns stress a comprehensive issue of confidence in the country’s economic management, especially in the foreign exchange market.
The cedi’s decline has provoked widespread debate in financial circles, with many experts attributing it to Ghana’s ballooning public debt, trade imbalances, and ongoing challenges in the energy sector.
As of September, the cedi was trading at over GH¢16.4 to the US dollar, a steep plunge from its value earlier in the year. This depreciation has raised the cost of imports, exacerbated inflation, and placed immense pressure on businesses that rely on foreign exchange for operations.
Dr. Kwakye also pointed out the irony of Ghana’s economic situation 67 years after gaining independence. “Ghana can’t maintain a stable currency after 67 years of independence,” he stated, reflecting the deep-seated frustration over the country’s inability to establish a resilient and thriving economy.
The economist’s remarks come at a time when the government is in talks with the International Monetary Fund (IMF) to secure a financial bailout to stabilize the economy, raising questions about the nation’s long-term economic prospects.
The Ghanaian government has repeatedly assured citizens that it is taking steps to stabilize the cedi, including the Bank of Ghana’s interventions in the foreign exchange market. However, with inflation hitting record highs and the local currency continuing to depreciate, many Ghanaians share Dr. Kwakye’s concerns that more robust and sustainable solutions are urgently needed to revive the economy and restore the cedi’s value.
