The Member of Parliament representing Okaikwei Central, Patrick Yaw Boamah, has called upon the government to maintain the recent improvements in the value of the cedi relative to the US dollar. He cautioned that this present stability might not last permanently unless immediate measures are implemented to boost investor trust and reinforce Ghana’s economic sectors.
The Ghanaian cedi, known for its historical volatility, has exhibited relative steadiness since December 2024—rising by 2.76 percent compared to the U.S. dollar by April 2025, as reported by the Bank of Ghana along with several commercial banks.
Speaking to Joy Business on the sidelines of the IMF/World Bank Spring Meetings in Washington, D.C., Mr. Boamah said: “It’s about confidence. The trust that economic managers instill in the financial markets and investor community influences projections about the cedi’s performance.”
Recently, Ghana has come to an agreement at the staff level with the International Monetary Fund (IMF), which clears the path for receiving a further installment of $370 million as part of their $3 billion rescue package. According to Mr. Boamah, this influx of money will aid in strengthening reserve levels and conveying optimistic messages to the commercial sector.
Nevertheless, he warned that pending government debts, amounting to approximately GHS 18 billion, might endanger the cedi’s appreciation. “It is crucial to evaluate the overall influence on the currency once the government starts settling these arrears,” he noted. He also emphasized that underestimating the potential consequences of injecting this substantial sum into the economy and its possible effect on currency devaluation would be unwise.
Mr. Boamah also questioned the origin of the cedi’s recent strengthening, implying that it might be necessary to ascertain if this is because of solid policy actions or short-term steps taken by the Bank of Ghana or the Finance Ministry.
He also pointed out that the present trade disputes and tariff problems might be lessening the demand for foreign currencies. This reduction has contributed to stabilizing the local currency. “When importers aren’t purchasing substantial amounts of dollars, the strain on the cedi decreases. However, after these matters are addressed and outstanding debts are settled, we will have a clearer picture of the economic situation.”
Mr. Boamah cited recent evaluations from the World Bank indicating a projected GDP growth rate of 5.7 percent for 2024 with a debt-to-GDP ratio at 61.8 percent. Nonetheless, updated forecasts predict a decline in anticipated growth to 3.9 percent for 2025, lower than the previously estimated 4.47 percent outlined in the initial budget proposal.
“These revisions highlight the intricate challenges we encounter—including domestic debts, worldwide instabilities, and local regulatory limitations. While the cedi’s steadiness is positive news, it should be seen merely as momentary respite until more fundamental problems are tackled,” he observed.
Provided by Syndigate Media Inc. (
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