Credit: Kekeli K. Blamey
The government’s ongoing efforts to stabilise the Ghana Cedi are part of a broader economic recovery strategy aimed at fostering long-term macroeconomic stability and rebuilding investor confidence, according to Nelson Cudjoe Kuagbedzi, Head of Finance at Merban Capital.
Rather than viewing exchange rate control as a short-term fix, Kuagbedzi says the administration is positioning currency stability as a cornerstone of its economic management framework.
By operating within a targeted exchange rate band, the government hopes to create an enabling environment for sustainable fiscal planning and economic growth.
“This is not just about meeting debt obligations—it’s about creating the right conditions for recovery,” Kuagbedzi explained. “They’re working within a range they consider optimal, not only to manage cashflows but also to re-establish macroeconomic predictability.”
He noted that the targeted exchange rate band indicates an active and calculated approach to foreign exchange management, aligned with broader economic objectives such as boosting export competitiveness and maintaining investor confidence.
President John Dramani Mahama recently echoed this sentiment in a dialogue with the Federation of Associations of Ghanaian Exporters (FAGE), stating that the Cedi is expected to stabilise within a GH¢10 to GH¢12 band per US dollar. The President described this range as “a fair value,” balancing the needs of exporters and importers alike while protecting Ghana’s macroeconomic gains.
Kuagbedzi believes now is the right time to capitalise on the relative stability, not only to begin resuming debt payments but also to advance Ghana’s economic rebuilding efforts.
“With stability in sight, the government must act decisively to consolidate gains and move forward with its recovery agenda,” he added.
The Mahama administration’s broader strategy includes restoring fiscal discipline, supporting productive sectors, and laying a solid foundation for medium- to long-term growth.
