Govt strategically targeting stable cedi to resume debt payments – Cudjoe Kuagbedzi

Nelson Cudjoe Kuagbedzi, Head of Finance at Merban Capital, spoke about the Ghana Cedi. He believes the government's efforts to stabilize it are strategic. This move aims to resume debt servicing under better fiscal conditions.

On June 5, 2025, Mr. Kuagbedzi shared his views on the Citi Breakfast Show. He noted that the government is targeting a specific exchange rate band. This band helps manage cash flows and meet debt obligations.

He explained that the government has a target rate for settling debts. Within this range, they feel comfortable starting payments. "It is a well-calculated strategy by the government," he said.

Mr. Kuagbedzi emphasized that this approach shows an effort to create stable macroeconomic conditions. These conditions support predictable fiscal planning and external payments.

He urged the government to take advantage of current economic stability. "This is the time for them to start paying their debt," he stressed.

His comments followed President John Dramani Mahama's recent meeting with exporters. The President projected that the Ghana Cedi would stabilize between GH¢10 and GH¢12 against the US dollar. He called this range “a fair value” for both exporters and importers.

The Mahama administration is also working on a broader economic recovery plan. This plan aims to rebuild investor confidence and protect export competitiveness while enhancing fiscal discipline.