Ghana’s macroeconomic stability is ‘rented’ and cedi-dependent — Dr Domfeh

Economist and Senior Lecturer at the University of Ghana, Dr George Domfeh, has questioned the Bank of Ghana’s approach to maintaining the strength of the cedi.

He argued that the country's current macroeconomic stability is heavily dependent on the performance of the local currency.

According to Dr Domfeh, a significant depreciation of the cedi could affect key economic indicators, including nominal GDP, debt-to-GDP and per capita income.

“Ghana’s ‘rented’ macroeconomic stability depends heavily on keeping the cedi strong. Once the cedi depreciates, indicators such as nominal GDP, debt-to-GDP and per capita income could quickly lose their shine," Dr Domfeh made the remarks in a social media post on Wednesday, September 2.

He asserted that the Bank of Ghana’s determination to support the cedi is driven less by underlying economic fundamentals and more by the desire to sustain favourable economic figures for the government.

The economist said the central bank appears willing to go to significant lengths to prevent the local currency from losing value.

“At this point, it is less about Ghana’s economic fundamentals and more about securing bragging rights for the NDC," he noted.