A strong cedi that kills businesses, jobs is not success – Prof Bokpin
Professor Godfred Bokpin, an economist at the University of Ghana, has criticised the Bank of Ghana’s persistent efforts to defend the cedi, warning that the central bank’s strategy to keep the exchange rate low is harming the real economy.
He explained that heavy interventions to maintain a strong cedi create distortions that restrict liquidity, limit access to credit, and slow down economic growth.
“Policymakers seem overly fixated on the exchange rate, lowering it at any cost, forgetting that stability is what truly matters. Businesses and the diaspora seek predictability and confidence, not sudden currency fluctuations,” Prof Bokpin said.
Describing Ghana’s focus on exchange rate performance as a “misguided national obsession,” Professor Bokpin argued that economic managers have sacrificed long-term development goals, such as job creation, productivity, and sustainable growth, for short-term currency strength.
He pointed out that while the Bank of Ghana’s interventions have kept the cedi firm, they have also tightened monetary conditions, leaving little room for private sector growth.
Prof Bokpin noted: “Tight fiscal and monetary policies aimed at supporting the cedi have drained liquidity, making it harder for businesses and households to access funds. There is no money in the system, and liquidity conditions are worsening across the economy.”
He further observed that billions of cedis spent to support the currency could have been better invested in business expansion and job creation. He warned that managing the exchange rate has become a political trophy pursued for short-lived praise rather than sustainable progress.
“A strong cedi that kills businesses and jobs is no success. True stability that builds confidence means more than a temporarily favourable exchange rate,” Prof Bokpin added.
