(3 Minutes Read)
President John Dramani Mahama has assured Ghanaians that the Cedi will not reach parity with the US dollar, emphasising that such a scenario would severely damage Ghana’s export sector. He stated that the Bank of Ghana is actively monitoring the exchange rate and stands ready to intervene if necessary to maintain economic stability.
Speaking during a multi-sectoral meeting on the 24-hour economy policy at the presidency on May 28, 2025, President Mahama attributed the recent appreciation of the Cedi to effective coordination between the Ministry of Finance and the Central Bank. He explained that this outcome stems from the foreign exchange auction system, which reflects market forces of demand and supply.
“The recent strengthening of the Cedi is the result of coordinated fiscal and monetary policies,” Mahama said. “The Bank of Ghana conducts forex auctions to assess how much Cedi liquidity is seeking foreign currency. Bidders submit their demands, and the Bank calculates an average exchange rate, accepting Cedis in return for the corresponding amount of dollars.”
He clarified that the depreciation of the dollar is not being artificially driven but is instead a natural reflection of the forex market’s functioning. The auction mechanism, he explained, ensures the Cedi’s value reflects real market conditions, which should support long-term stability.
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President Mahama dismissed concerns that the Cedi could rise from GHC 1 to USD 1, calling it an unrealistic and dangerous scenario. “Such an extreme shift would collapse our export sector,” he warned. “However, I am confident the Governor of the Bank of Ghana is keeping a close eye on the situation. If the exchange rate falls below a critical threshold, the Bank will step in to ensure it stays within a sustainable range.” He concluded by urging the public not to panic, reiterating that the exchange rate is being closely watched and necessary steps will be taken to preserve the value of the national currency.
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