Audio By Carbonatix
The Institute of Economic Research and Public Policy (IERPP) is questioning the scale of Ghana’s foreign exchange interventions, saying that the reported US$18 billion used to support the cedi could have significant opportunity costs for the economy.
According to IERPP, the Bank of Ghana injected about US$10 billion into the foreign exchange market in 2025, with another US$8 billion reportedly deployed between January and August 2026.
The institute says this brings the reported cumulative intervention to about US$18 billion.
In a statement issued on Wednesday, August 12, IERPP contrasted this figure with the government’s estimated US$4 billion financing requirement for the 24-Hour Economy policy.
The policy, according to the institute, has the potential to create about 1.7 million jobs.
“Why should Ghana deploy approximately US$18 billion to shore up the Cedi while a fraction of that amount could potentially finance a major productive-sector intervention capable of creating millions of jobs?” IERPP asked.
The institute stressed that it is not opposed to interventions aimed at stabilising the cedi, acknowledging that exchange-rate stability is important for controlling inflation, import costs and business uncertainty.
However, it argues that repeated large-scale interventions should prompt policymakers to address the structural weaknesses that continue to put pressure on the currency.
“The issue is not whether the Cedi should be supported. It is whether the scale, sustainability and opportunity cost of such interventions are receiving sufficient public scrutiny,” the statement said.
IERPP noted that the reported US$18 billion is about 4.5 times the US$4 billion it says is required for the 24-Hour Economy.
It argues that greater investment in manufacturing, agro-processing, logistics, tourism, technology and other productive sectors could help create jobs, increase exports and generate more foreign exchange.
The institute is calling on the Bank of Ghana and government to provide details on the reported US$18 billion in interventions.
It wants information on the exact amounts deployed, the sources of the foreign exchange, the mechanisms used and the impact of the interventions on the cedi.
IERPP is also asking for an assessment of the effect of the interventions on Ghana’s gross international reserves and the long-term sustainability of the approach.
The institute is similarly demanding greater clarity on the reported US$4 billion financing requirement for the 24-Hour Economy, including what the money will finance, the expected number of jobs, the sectors and regions to benefit and safeguards against inefficient public spending.
IERPP says Ghana’s long-term objective should be to build an economy that generates enough foreign exchange through production and exports rather than relying heavily on interventions to defend the currency.
“Ghana needs a policy framework that does not merely defend the Cedi today but builds an economy capable of supporting the Cedi tomorrow,” it said.
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