In Ghana, our relationship with the cedi is filled with contradictions. When it depreciates, we complain. When it appreciates, we still complain. The reasons may differ, but the discontent remains the same.
When the currency weakens, we declare the economy is on life support. When it gains strength, we say it’s fake, unsustainable, or bad for exporters. Either way, the cedi just can’t seem to win.
So what’s really going on?
When the Cedi Falls: A Familiar Chorus of Complaints
A depreciating cedi often signals trouble. It means imported goods cost more, fuel prices rise, and inflation eats away at purchasing power. The pressure trickles down to transport fares, market prices, rent, and tuition. The Bank of Ghana typically reacts by hiking interest rates, driving up borrowing costs for businesses and individuals alike.
Ghanaians take to radio, Twitter, and the streets with the same question: “What is the government doing about this?” And they have a point.
Case in point: In 2022, under President Akufo-Addo’s administration, the cedi suffered one of its worst declines in history, dropping by over 50% in value. Global headlines named it the worst-performing currency that year. Panic swept through the country. Prices of basic goods skyrocketed, and inflation soared above 50%. Despite the Bank of Ghana injecting over $2 billion into the system and an IMF bailout on the horizon, confidence remained low.
But When the Cedi Rises: New Complaints Emerge
Now imagine the cedi appreciating. Maybe it’s due to a fresh IMF disbursement, a cocoa revenue boost, or positive investor sentiment. One would expect collective relief.
Instead, new concerns arise.
“It’s artificial.”
“It’s hurting exporters.”
“Remittances will suffer.”
“It’s a short-term fix, just watch.”
While the concerns aren’t entirely unfounded, they reveal a deeper issue: even good news is met with skepticism.
Example: In the first months of 2025 under President Mahama’s new administration, the cedi has appreciated significantly. This has been attributed to renewed fiscal discipline and improved international confidence. But the praise hasn’t been universal. Exporters are complaining about tighter margins. Remittance services report a dip in inflows as the stronger cedi gives less value to senders abroad. Critics argue that the recovery isn’t backed by real economic change.
So, once again, even a strengthening currency stirs unease.
Time to Rethink How We React
The real issue isn’t the cedi’s movement, but the underlying structure of Ghana’s economy. We’re overly dependent on imports and underdeveloped in exports. So whether the cedi goes up or down, there’s always a segment that feels the pinch.
Rather than obsess over daily exchange rate swings, we should focus on structural reforms:
- Boost local production to reduce reliance on imports.
- Expand and support exports to earn more stable foreign income.
- Establish financial buffers like a stronger Stabilization Fund.
- Deepen the forex market to reduce volatility.
- Add value locally so we don’t export raw materials at low prices.
Let’s Stop Treating the Cedi Like a Scapegoat
Currencies fluctuate. That’s their nature. But Ghana’s overreaction to every rise and fall reflects a deeper economic fragility, and perhaps a cultural tendency to externalize blame.
The focus should be on building a resilient, export-oriented, and inclusive economy that thrives whether the cedi trades at 10 or 14 to the dollar.
Until that happens, the cedi will keep moving, and Ghanaians will keep complaining.
And maybe, just maybe, both reactions are part of who we are. After all, even when the rain comes at the right time, we say it poured too hard.
