Cedi gains driven by multiple factors, not just gold – Dr. Atuahene

Banking Consultant and Economist Dr. Richmond Atuahene has shared insights on the Ghana cedi's recent appreciation. He cautioned against attributing this solely to the government’s gold-backed strategies.

Dr. Atuahene spoke on The Point of View with Bernard Avle on Channel One TV. He emphasized that multiple economic forces contribute to the cedi's gains. “The currency is not strengthened because it is only gold,” he stated.

He highlighted the significant rise in foreign remittances as a key factor. Increased remittances have boosted liquidity in the banking sector. This improvement helps banks access more cedis and supports overall currency stability.

Dr. Atuahene also mentioned rising cocoa prices as another important factor. “A year ago, cocoa was sold at $4,825 per metric tonne,” he noted. “Today, it’s around $8,000.”

In addition to remittances and exports, he pointed out macroeconomic policies as crucial drivers. Fiscal discipline and tightened monetary policy play significant roles in the cedi’s resurgence.

“All these factors matter,” he said, stressing that it’s not just about gold. Dr. Atuahene urged policymakers and the public to view the economy more broadly. The cedi's performance reflects a mix of policies and economic activity working together.