Ghana Cedi's Fate: Expert Predicts Strengthening, Warns of Inflation

Ghanaian Economist Predicts Cedi Strengthening, Warns of Inflation Risks Ghana's economy is under scrutiny, with the Ghana cedi's value a major concern. In a recent interview on UTV Ghana, Professor Lord Mensah, Professor of Financial Economics at the University of Ghana Business School, offered insights into the potential trajectory of the cedi. Professor Mensah stated, "If the government actively commences spending, the Ghana cedi is expected to strengthen to around GH₵13, but not exceed GH₵15." This prediction is based on the anticipated impact of increased government spending on the economy. However, he cautioned that exceeding GH₵15 could trigger inflation. The professor's comments highlight the delicate balance the government must strike between stimulating economic growth and managing inflation. The interview underscores the importance of responsible fiscal policy in navigating the current economic climate in Ghana. The government's spending decisions will be crucial in determining the cedi's performance and the overall economic stability of the nation.