Former President John Dramani Mahama has described projections of the Ghana cedi appreciating to GHS4 against the US dollar as “unrealistic.”
He believes a more balanced and sustainable exchange rate lies between GHS10 and GHS12 to the dollar.
Speaking at a policy dialogue with the Federation of Associations of Ghanaian Exporters (FAGE), Mahama said, “Some people say it will come down to four but of course we know the true value of the cedi is not four and if it went as far down as four it will kill all our export businesses. I met with the Governor and the Finance Minister and discussed it and they think that the real value of the cedi is anywhere between 10 and 12. Luckily the forex auction has brought it to just above 10 and it appears to have stabilised there.”
He added, “So I think going forward anything between 10, 11 and 12 as a band where the cedi operates will be a fair value both to encourage our exports but at the same time not to make our imports so cheap that importers will flood our markets.”
Mahama stressed the importance of targeted incentives for exporters and called for the removal of bureaucratic bottlenecks that hinder trade.
“The more we export and earn foreign exchange, the more we relieve pressure on the cedi. It’s a simple equation that requires a serious national commitment to value addition and trade facilitation,” he said.
FAGE leaders welcomed the engagement, describing it as timely and necessary for aligning economic policy with business realities. Mahama’s remarks come amid increasing pressure on policymakers to adopt long-term strategies to stabilise the economy and build a more competitive, export-driven growth model.
Fitch Solutions has adjusted its end-2025 forecast for the Ghanaian cedi to GHS13.0/USD, from an earlier estimate of GHS15.5/USD, citing a 30% strengthening of the cedi between late April and May 2025, driven by higher global gold prices.
