ISSER calls for stricter exchange rate controls to sustain Cedi appreciation

The Institute for Statistical, Social, and Economic Research (ISSER) is urging policymakers to strengthen exchange rate management. This will help protect the recent gains of the Ghanaian cedi.

ISSER warns that without proper oversight, the cedi's appreciation may not last. Professor Peter Quartey, ISSER's Director, made this statement during a launch event in Accra. He emphasized the need for consistent macroeconomic policies to build confidence in the currency.

To maintain stability, he said monetary policies must continue as they are now. The Bank of Ghana should keep increasing gold reserves. He also noted that geopolitical factors are affecting the US Dollar's value.

Quartey pointed out issues with enforcing exchange rules in Ghana. In other countries, authorities track currency purchases using passports. This helps ensure transparency about how foreign currency is used.

Recently, the cedi has shown resilience after months of depreciation. This change has raised public hopes for lower prices on imported goods.

Regarding consumer demands for price reductions, Quartey acknowledged their validity. He noted that prices tend to be sticky downwards in Ghana. When the exchange rate drops quickly, traders raise prices immediately but are slow to lower them when it rises again.

He also recognized that some traders imported goods at older exchange rates, complicating pricing adjustments.