Economist Urges Calm Over Cedi Depreciation
Economic analyst Emmanuel Boateng is urging calm among businesses and households amid the recent weakening of the Ghana cedi against major international trading currencies, cautioning against panic-driven reactions that could worsen market sentiment.
While acknowledging growing public concern over the currency’s performance, Mr. Boateng said the current depreciation trend does not indicate a crisis situation, stressing that it remains significantly milder compared to previous episodes of sharp and destabilising currency volatility in the country.
Speaking on the Market Trends Segment of the Business Breakfast Show on ZED 101.9 FM, the analyst said recent exchange rate movements should be viewed within a broader macroeconomic context, including ongoing adjustments in global markets, import demand pressures, and seasonal foreign exchange flows.
He explained that currency fluctuations are a normal feature of open economies and should not automatically be interpreted as signs of economic collapse. According to him, Ghana’s current exchange rate dynamics are being managed within a relatively stable framework compared to past periods of severe stress.
Mr. Boateng noted that despite the depreciation, key economic indicators do not suggest the kind of structural breakdown that previously triggered full-blown currency crises. He added that improved policy coordination and ongoing fiscal and monetary interventions are helping to contain excessive volatility.
He further cautioned businesses against making abrupt pricing or investment decisions based solely on short-term exchange rate movements, advising them instead to adopt forward-looking planning strategies that account for gradual currency adjustments.
“For now, the fundamentals do not point to panic. What we are seeing is a manageable adjustment rather than a crisis,” he indicated.
The analyst also acknowledged that sustained depreciation can still have implications for import-dependent households and firms, particularly through higher costs of goods and services. However, he stressed that these effects are typically gradual and can be mitigated through sound economic planning and policy response.
Mr. Boateng concluded by encouraging stakeholders to remain patient and to monitor economic developments closely, rather than reacting emotionally to short-term currency movements.
His remarks come at a time when the cedi has come under renewed pressure in the foreign exchange market, prompting concerns among traders, importers and consumers over potential price increases in the coming weeks.
