Cedi at ¢4 to $1 unrealistic, ¢10–12 more sustainable – Mahama burst Ghanaians bubbles

President John Dramani Mahama has called the cedi's value of GHS 4 to $1 unrealistic.

He believes projections suggesting this strength are not accurate. Mahama met with the Bank of Ghana Governor and the Finance Minister. They discussed the cedi's real value, estimating it between GHS 10 and GHS 12.

Mahama noted that the cedi has stabilized at its current level. He emphasized the need for a fair balance in determining its true worth. An exchange rate between GHS 10 and GHS 12 supports Ghana’s exporters better.

During a meeting with the Federation of Associations of Ghanaian Exporters, he explained recent changes. The cedi has started to strengthen while the dollar depreciated. This affects imports and exports, making imports cheaper and exports more expensive.

Mahama warned that if the cedi drops to GHS 4, it could harm export businesses. He reiterated that he, along with officials, believe its true value is between GHS 10 and GHS 12.

The Forex auction has helped stabilize it just above GHS 10. Mahama stated that a range of GHS 10 to GHS 12 would encourage exports without flooding the market with cheap imports.

He also mentioned challenges for exporters due to cheaper raw materials from Cedi appreciation. Lower fuel prices will reduce transportation costs, benefiting both exporters and importers.

Mahama urged importers to consider producing substitutes locally instead of relying on imports from abroad.