By Benjamin Nii Nai Anyetei
Associate Professor and Dean of the Faculty of Accounting and Finance at the University of Professional Studies, Accra (UPSA), Prof. Isaac Boadi, has said that Ghana’s economic challenges are driven by productivity deficits rather than a “currency problem.”
Speaking on recent trends in the cedi, Prof. Boadi described the ongoing debates about the currency as “a conversation that will never end in Ghana”, stressing that celebrations over exchange rate movements are misplaced without corresponding gains in productivity.
“Ghana doesn’t have a currency problem; we have a productivity problem. Victories without productivity will not end well,” he said, adding that economic discussions should focus more on policy-driven outcomes in education, health, and industry rather than politicizing currency fluctuations.
On the Cedi’s performance this year, Prof. Boadi provided a detailed breakdown:
January–February 2025: Depreciation of 1.5% (from 15.3 to 15.53 GHS/USD)
February–March: Remained flat
March–April: Depreciation of 8.9%
April–May: Depreciation of 27.3% — the highest recorded during the year
June–July: Depreciation of 1.8%
July–August: Depreciation of 8.6%
He noted that Bloomberg identified the cedi as one of the weakest-performing major currencies in the second quarter, attributing the decline primarily to high demand for imports ahead of the holiday season.
Prof. Boadi highlighted that while Ghana’s exports grew from $4.3 billion to $13.8 billion and foreign reserves increased from $6 billion to $11 billion, the Bank of Ghana had to inject substantial forex into the system to meet demand. “The difference between our exports and reserves shows the extent of forex interventions. These injections are not a reflection of currency weakness but a response to high demand for dollars in the market,” he said.
He stressed that the solution lies in boosting domestic production: “If we are able to produce more, we can sustain the gains of the cedi. We must focus on increasing productivity rather than just celebrating currency movements.”
Prof. Boadi’s comments come amid ongoing discussions about the Cedi’s depreciation, which has continued to impact businesses and households across the country.
One Response
GOOD MORNING ALL THE QUESTION ON THE BLACKBOARD STILL REMAINS WE DONT HAVE DOLLAR TREES IN GHANA WE MUST WORK AND WORK CREATE MASSIVE POINTS OF PRODUCTION IN ALL THE REGIONS CHANGE OF MIND SET AND BELIEVE GHANA CAN SURPASS THE GIANTS OF THE EAST IF WE WORK HARD