Market analysts urge both monetary and fiscal authorities to solidify the recent improvements of the Ghana cedi and to prevent any possible decline.
The local currency, which surpassed the GH¢17 threshold in the retail market in 2023, is currently trading around GH¢14, indicating a level of resilience that many consider one of the strongest performances in recent years.
Courage Boti, Macroeconomic Research Manager at GCB Bank PLC, informed the media that this performance is fueled by enhanced forex liquidity, but he warned against any lapse in fiscal discipline.
‘Ghana has a history of improved market sentiment following elections and changes in political leadership, particularly evident in a strengthened exchange rate.
However, this trend is not unprecedented, and the critical issue now is how to maintain this momentum.’
‘The leadership is promising, but we have witnessed similar situations in the past, so the focus should be on sustaining it. We have discussed the need for fiscal discipline and the importance of reducing inflation.’
‘The onus is on the Finance Minister and the government to translate their commitments into action by preserving investor confidence and economic stability through tangible advancements in revenue generation and expenditure management without incurring excessive arrears.’
