President John Dramani Mahama has deemed the call from certain Ghanaians for the US dollar to be valued at GH¢1 as impractical. He cautioned that such a significant appreciation of the cedi could have detrimental effects on Ghana’s export sector.
“Some people say it will come to GH¢1 to $1. No, that’s extreme. We’ll eventually collapse our export sector if that happens,” the President stated.
In previous remarks, President Mahama highlighted that Ghana’s total debt has been reduced by GH¢150 billion, primarily due to the recent strengthening of the cedi. He expressed optimism that if this positive trend persists, Ghana could achieve its debt sustainability goals by the year’s end.
These comments were made during a high-profile presidential session at the 60th Annual Meeting of the African Development Bank (AfDB) and the 51st Annual Meeting of the African Development Fund (ADF) in Abidjan. “If that trajectory continues, the target of reaching 55 to 58 percent debt sustainability by 2028 will be achieved by the end of this year. That gives us the fiscal space to begin investing in the most productive sectors of the economy,” President Mahama remarked.
Over the past four months, Ghana’s local currency, the cedi, has appreciated by 24.1% against the US dollar, a change attributed to improved fiscal measures and robust global commodity prices. The President noted that a depreciating cedi often leads to an increase in the nation’s debt stock, underscoring the necessity of maintaining a stable currency for effective debt management.
He reaffirmed his administration’s dedication to restoring economic stability and fostering growth. “We need to look inward, boost domestic revenue, cut wasteful government expenditure, fight corruption, and introduce stronger accountability in governance. That is the focus of my administration,” he concluded.
