Finance Expert Urges Economic Diversification to Stabilise Cedi
By: Solomon Nartey Tetteh
Financial Expert and Head of Finance at Merban Capital Limited, Nelson Cudjoe Kuagbedzi, has called for greater diversification of Ghana’s economy, with a strong focus on the export of value-added products as a long-term solution to stabilising the local currency.
The discussion comes as Ghana marks 60 years of the Ghanaian cedi, the national currency introduced in 1965 to replace the Ghana pound. Six decades on, the cedi remains central to the country’s economic journey, having undergone several redenomination and policy reforms.
Speaking on Business Breakfast on Zed 101.9FM, Mr. Kuagbedzi emphasised that Ghana’s overreliance on raw material exports has limited the country’s ability to generate sustainable foreign exchange earnings. According to him, exporting processed and value-added goods will create more consistent revenue streams to support the cedi.
Mr. Kuagbedzi further explained that moving away from the colonial economic model which prioritised the export of raw materials is crucial for long-term stability and growth. However, he noted that in the short term, supportive monetary policies from the Bank of Ghana will be essential.
“Within the immediate and short term, the Bank of Ghana’s support and policies are needed to give strength and stability to the Ghanaian cedi,” he said.
He also clarified that Ghana’s current free-floating exchange rate system remains appropriate for the economy, despite its challenges.
“Ghana operates a free-floating currency system. We don’t peg our currency, and I don’t think pegging is the option to take. The problem is not the system it’s the policies and leadership. Once we have the right leadership and the right policies, we will continue to enjoy stability as far as our currency is concerned,” he stressed.
