President John Dramani Mahama has cautioned that an excessively strong Ghanaian cedi could negatively impact the country’s export sector. He emphasized the need for a balanced exchange rate to support both exporters and importers.
Speaking at a meeting with the Federation of Associations of Ghanaian Exporters (FAGE), President Mahama stated that while the recent appreciation of the cedi is commendable, it must be managed carefully. He warned that allowing the cedi to strengthen to GH¢4 against the US dollar would severely harm Ghana’s export businesses. He noted that such an appreciation would make exports more expensive and less competitive on the international market.
President Mahama disclosed that he had consulted with the Governor of the Bank of Ghana and the Finance Minister, and they concurred that the cedi’s true value lies between GH¢10 and GH¢12 to the US dollar. He explained that this range would encourage exports while preventing imports from becoming so cheap that they flood the market with unnecessary goods.
The President’s remarks come amid concerns from exporters about the challenges posed by the cedi’s appreciation. The Canada-Ghana Chamber of Commerce has expressed that many exporters are incurring losses because they are unable to adjust quickly to the cedi’s appreciation. The Chamber emphasized the urgent need for government intervention to stabilize the cedi and support exporters.
President Mahama assured stakeholders that the government would continue to monitor the cedi’s performance and implement measures to maintain a balanced exchange rate. He reiterated the importance of supporting the export sector to ensure sustainable economic growth and job creation.
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