Ghana Cedi notes
Dr. John Kwakye, Director of Research at Ghana’s Institute of Economic Affairs (IEA), anticipates short-term stability for the cedi due to recent interventions by the Bank of Ghana (BoG) before the upcoming elections.
The BoG has halted partnerships with Taptap Send over violations of foreign exchange regulations, suspended the foreign exchange license of Consolidated Bank Ghana (CBG), and issued warnings to forex market players.
Dr. Kwakye, however, questions the long-term sustainability of this stability, citing significant depreciation of the cedi, which has lost 74% of its value over three years.
He also points to election-related uncertainties, IMF program concerns, debt negotiations, and reduced cocoa export revenues as ongoing risks. The IEA suggests that a national emergency declaration may be necessary to stabilize the cedi further.
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