We should continue doing what we’re doing domestically to keep the cedi strong — Prof Quartey

Director of the Institute of Statistical, Social and Economic Research (ISSER), Professor Peter Quartey, has advised that Ghana must maintain its current domestic policies to sustain the recent gains made by the cedi.

He warned that any relaxation in fiscal discipline or poor coordination between economic managers could cause the local currency to depreciate again.

Speaking on the sidelines of the Cash in Crisis in Africa conference organised by MIASA in Accra on Tuesday, May 20, where he served as chairperson, he noted that the dollar may soon become strong again.

“We should continue doing what we’re doing domestically to keep the cedi strong — otherwise, depreciation could return,” Prof Quartey said.

Professor Quartey attributed the cedi’s recent appreciation to a combination of both local and international factors, citing Ghana’s gold-for-reserves policy and improved fiscal management as major contributors.

“There are a combination of factors, both domestic and external. Domestically, we have seen the gold-for-reserves policy helping. Externally, the dollar has been weakening due to global geopolitical tensions between the US, China, and other countries — including the tariff war,” he explained.

He also commended the Bank of Ghana and the Ministry of Finance for what he described as improved coordination and increased transparency, which he believes is restoring public confidence.

Meanwhile, research firm Fitch Solutions has predicted that the Ghana cedi may end the year with a selling rate of GHS15.50 — weaker than how it ended 2024.