GH₵4 to $1 unrealistic, cedi should stabilise between GH₵10–GH₵12 – Mahama
President John Dramani Mahama has described projections of the Ghana cedi appreciating to GH₵ 4 against the US dollar as “unrealistic,” stating that a more balanced and sustainable exchange rate lies between GH₵10 and GH₵12 to the dollar.
According to him, maintaining the cedi within the GH₵10–GH₵12 range strikes a better balance—ensuring Ghanaian exports remain competitive while supporting broader macroeconomic stability.
President Mahama made the comments during a policy dialogue with the Federation of Associations of Ghanaian Exporters (FAGE) on Tuesday May 3, where discussions centred on improving the competitiveness of Ghanaian exports amid a volatile macroeconomic environment.
“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.
“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,” he said.
The President stressed the importance of targeted incentives for exporters and called for the removal of bureaucratic bottlenecks that hinder trade.
He noted that a strong export sector is essential to stabilising the cedi, driving job creation, and supporting broader economic resilience.
“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.
Leaders of the FAGE welcomed the engagement, describing it as timely and necessary for aligning economic policy with business realities.
Mr. Mahama’s remarks come at a time of increasing pressure on policymakers to adopt long-term strategies to stabilise the economy and build a more competitive, export-driven growth model.
Already, Fitch Solutions has adjusted its end-2025 forecast for the Ghanaian cedi, revising it to GH₵13.0/USD, from an earlier estimate of GH₵15.5/USD. For the economic research firm, the cedi has strengthened by 30% between late April and May 2025, primarily driven by higher global gold prices.
Fitch explains this will help alleviate inflationary pressures and create room for the Bank of Ghana (BoG) to pivot towards monetary easing in the second half of the year.
