Bright Simons attributes persistent cedi volatility to perverse FX interventions by BoG

IMANI Ghana’s Vice President, Bright Simons, attributes long-term Cedi volatility to "perverse FX interventions" by the Bank of Ghana (BoG).

He argues these actions misprice the Cedi, enabling speculators to profit, disrupting foreign trade demand planning, and exacerbating currency sentiment.

Simons likened the current situation to previous mismanagement episodes, warning that overvalued and rapidly depreciating currencies are equally detrimental.

Financial economist Professor Lord Mensah supports this view, stating the Cedi is adjusting to its true market value after being manipulated in 2024 to influence elections. The BoG reportedly sold over $200 million in Q4 2024 to curb depreciation.

In January 2025, the Cedi depreciated by 2.06% against major currencies, trading at GHS 15.06 per USD, GHS 18.55 per GBP, and GHS 15.69 per EUR, signaling continued challenges.