By Ashiadey Dotse
The Professor of Finance at the University of Ghana, Prof. Godfred Bokpin, says he is not surprised by the recent depreciation of the Ghana cedi.
Speaking on TV3’s Keypoints show on Saturday, September 13, 2025, Prof. Bokpin explained that the current situation reflects the cyclical nature of the cedi, which has historically shown sharp gains followed by reversals. He said this pattern is not new and should be expected, especially in the last quarter of the year.
He noted that although the government has shown fiscal discipline, cut expenditure, and pursued prudent monetary policies in 2025, the fundamentals of the economy go beyond these measures. According to him, Ghana must focus on structural and productivity transformation in the real sector, while also considering global economic developments since the country does not operate in isolation.
Prof. Bokpin added that while the Bank of Ghana’s interventions helped stabilize the cedi earlier, limited reserves make it unsustainable to maintain such aggressive support. He further cautioned that when the cedi strengthens too quickly, it can hurt local businesses, encourage smuggling, and make imports more attractive than local production.
He emphasized the need for stability rather than sharp swings, saying businesses and households prefer predictability for proper planning and budgeting. He also highlighted that reliance on the black market exchange rate undermines confidence in the official system, stressing that Ghana must strengthen its economic fundamentals and institutions to address the recurring challenges.
The Ghana cedi’s exchange rate in March 2025 stood at GHS 15.45. It appreciated sharply in April, dropping from GHS 14.30 to GHS 10.45 by July 2025. Since then, however, the currency has trended downward, moving from GHS 11.71 in August to GHS 12.20 in September 2025.
