Mahama: GHS4 to $1 unrealistic, cedi should stabilise between GHS10–GHS12

President John Dramani Mahama called the idea of the Ghana cedi reaching GHS4 against the US dollar “unrealistic.” He believes a more sustainable exchange rate is between GHS10 and GHS12 to the dollar.

Mahama stated that keeping the cedi in this range will help Ghanaian exports stay competitive. It will also support broader macroeconomic stability. He made these comments during a policy dialogue with the Federation of Associations of Ghanaian Exporters (FAGE) on May 3.

During the discussion, he emphasized that if the cedi dropped to GHS4, it would harm export businesses. He met with the Governor and Finance Minister, who agreed that its true value lies between GHS10 and GHS12. Currently, the forex auction has stabilized it just above GHS10.

Mahama suggested that a band of GHS10 to GHS12 would encourage exports without making imports too cheap. He highlighted the need for targeted incentives for exporters and removing bureaucratic obstacles to trade. A strong export sector is crucial for stabilizing the cedi and creating jobs.

He explained that increasing exports would relieve pressure on the cedi. This requires a national commitment to value addition and trade facilitation. FAGE leaders welcomed his engagement as timely and necessary for aligning economic policy with business needs.

Mahama’s remarks come amid growing pressure on policymakers to stabilize the economy. Fitch Solutions recently revised its end-2025 forecast for the cedi from GHS15.5/USD to GHS13.0/USD. They noted that higher global gold prices have strengthened the cedi by 30% since late April 2025.

This strengthening could ease inflationary pressures and allow room for monetary easing by the Bank of Ghana later this year.