Professor Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER), says the recent appreciation of the cedi results from a complex mix of domestic and international factors.
Prof. Quartey emphasized that while the cedi had faced downward pressure, some domestic policies were actively helping to mitigate the decline.
The Director spoke in an interview with the Ghana News Agency after a two-day conference of Merian Institute of Advanced Studies in Africa’s (MIASA) 12th Interdisciplinary Fellow Group (IFG12) in Accra.
The conference was on the theme: “Cash in Crisis in Africa: Navigating Financial Realities in Times of Disruption.”
It is aimed at exploring the often conflicting dynamics between policy and governance frameworks and crises in shaping the circulation, accessibility and utilisation of cash, in an increasingly digitised African society.
He pointed to the government’s Gold for Reserves programme as a positive step in cushioning the impact of global economic instability.
“Domestically, the gold for reserves policy is helping because of what is happening globally,” he said.
Prof. Quartey said there were improvements in fiscal discipline, indicating that the government was currently living within its means, spending within the limits of what it raises in revenue.
“If we were running an excessive deficit, we would have to borrow more, and that would increase interest payments and put pressure on the cedi. But we are not doing that now,” he explained.
He commended the improved coordination between the Ministry of Finance and the Bank of Ghana, noting a more unified and transparent approach to economic management.
“I find the Bank of Ghana to be more engaged now, and they are carrying the public along, explaining policies and reforms. When you do that, people gain confidence in the local currency and that strengthens the cedi,” he said.
Prof. Quartey pointed to global tensions, particularly the ongoing trade dynamics between the United States and China, as a contributing factor to the weakening of the US dollar.
However, he expressed optimism that as tariff-related disputes eased and international agreements took shape, global currency markets were likely to stabilise.
He urged the government to stay the course with its current domestic strategies, warning that any deviation could reverse the progress made.
“If we continue doing what we are doing domestically, we will see more stability in the cedi, otherwise, the depreciation could worsen again,” he said.
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