Economist debunks claims Russia-Ukraine war and COVID-19 as causes of cedi depreciation

Prof. Alex Annan Abakah, a finance scholar from Bentley University, has refuted claims that the Russia-Ukraine war and the COVID-19 pandemic are the primary causes of the Ghanaian cedi’s depreciation.

Speaking at a policy dialogue in Accra, he explained that the real drivers are Ghana's deep-rooted economic weaknesses.

According to his research, the pandemic contributed only 11% to the cedi's depreciation, while the Russia-Ukraine war had no significant impact, with the ruble and hryvnia even appreciating against the cedi.

Prof. Abakah highlighted that Ghana’s weak economic fundamentals, including fiscal imbalances, have been key factors in the cedi's decline.

He proposed measures like debt ceilings, fiscal discipline, and long-term investments in infrastructure to stabilize the economy and reduce the cedi's depreciation.