Cedis’s fair value to the dollar is anywhere between 10 and 12 – Mahama

President John Mahama has stated that the true value of the Ghanaian cedi is likely between 10 and 12 to the dollar.

He discussed this with the Governor of the Bank of Ghana and the Finance Minister. They believe that the real value of the cedi falls within this range.

Mahama noted that the cedi has stabilized at this level. He emphasized the need for a fair balance in determining its actual worth.

During a meeting with the Federation of Associations of Ghanaian Exporters, he explained, “The recent appreciation of the cedi is significant.” He mentioned that as the cedi strengthens, imports become cheaper and exports more expensive.

He warned against letting the cedi drop too low. “Some say it will come down to four,” he said, “but we know that's not true.” A lower value could harm export businesses.

Mahama added that discussions with officials confirmed their belief in a value between 10 and 12. The Forex auction has brought it just above 10, where it seems to have stabilized.

He believes a range between 10 and 12 is fair for both exporters and importers. This balance prevents an influx of cheap imports flooding local markets.

Mahama also pointed out challenges for exporters due to raw material costs. However, he noted that lower fuel prices make transportation cheaper.

He encouraged importers to bring in substitutes so Ghana can produce more locally. This would reduce reliance on imported goods.