Ghana's Cedi Volatility: Expert Calls for Government Action

Ghana's Cedi Exchange Rate: Expert Urges Government Intervention Ghana's economy is facing challenges due to the fluctuating value of its currency, the cedi. Professor Lord Mensah, Professor of Financial Economics at the University of Ghana Business School, recently appeared on UTV Ghana to discuss this critical issue. He highlighted the need for a stable exchange rate to support exports and reduce imports. "The government should find a cedi exchange rate that will enhance our exports and reduce imports," stated Prof. Mensah during the live broadcast. He presented a detailed analysis of the cedi's performance against the US dollar since 2007, emphasizing its volatility and its negative impact on various sectors of the Ghanaian economy. Prof. Mensah's analysis included historical data and economic models to support his claims. He suggested that policy interventions, such as a two-tiered buffer system, could help manage the cedi's volatility and maintain a more stable exchange rate. This would create a more predictable environment for businesses, promoting investment and economic growth. The discussion on UTV Ghana sheds light on the complexities of managing exchange rates in a developing economy. Prof. Mensah's recommendations offer valuable insights for policymakers and underscore the importance of a stable cedi for Ghana's economic future.