Not yet ‘hurray’ for the Cedi — IEA urges shift to export-driven economy

The Institute of Economic Affairs (IEA) has raised concerns about the Ghanaian Cedi. They warn that its recent appreciation may not last beyond December 2025. This is only possible with deeper economic reforms.

At a press briefing in Accra on May 27, Dr. Vladimir Antwi-Danso spoke about this issue. He cautioned that the Cedi's gains this year could easily reverse. This will happen if Ghana does not address long-standing structural challenges.

Dr. Antwi-Danso stated, “What we are doing is not stabilizing permanently.” He believes there will be a relapse by December. His comments are based on technical analysis, not politics. He added, “It is not yet hurray for the Cedi appreciation.”

The Cedi has appreciated significantly in early 2025. This is due to interventions from the Bank of Ghana and tighter fiscal policies. However, Dr. Antwi-Danso insists these short-term measures are not enough for long-term stability.

He emphasized that simply appreciating foreign exchange and the Cedi is insufficient. Ghana must become an export economy to stabilize its economy.

The IEA's warning comes as economists urge Ghana to adopt sustainable strategies. These include export diversification, industrialization, and value addition. Such strategies would reduce reliance on external support and volatile commodity prices.

Dr. Antwi-Danso’s comments highlight the need for durable reforms in Ghana’s macroeconomic recovery. Temporary fixes will not withstand future economic shocks.