Cedi stability: The economy's overreliance on forex problematic

Professor Godfred Alufar Bokpin

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Economist Prof. Godfred Bokpin has cautioned that Ghana’s heavy reliance on foreign exchange is undermining the stability of the cedi.

Speaking on JoyNews’ Newsfile on Saturday, he noted that while Bank of Ghana interventions may be necessary when volatility is excessive, extensive interference risks creating an artificial exchange rate that does not reflect market realities.

According to him, such a situation could trigger responses that the central bank would be unable to control.

The Ghanaian Cedi has shown a remarkable turnaround in 2025.

According to the Finance Minister’s 2025 Mid-Year Budget Review, the cedi depreciated by only 6.8% in the first half of the year, far better than the programmed 19.8% and a significant improvement over the 21.8% depreciation recorded in the same period of 2024.

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