Gov’t Aims to Stabilise Exchange Rate at GHS 10/$1
Presidential Advisor on the Economy, Seth Terkper, has disclosed that the government is working towards stabilising the Ghana cedi at around GH¢10 to the US dollar, as part of a broader macroeconomic strategy to reinforce fiscal discipline and restore investor confidence.
Speaking on PM Express, the former Finance Minister indicated that a coordinated approach involving both monetary and fiscal tools is being deployed to curb exchange rate volatility.
“We’re not just relying on monetary tools, but combining them with structural fiscal reforms and tighter expenditure controls,” he stated. “The goal is to achieve a stable range, and we’re aligning policy actions to get there.”
His remarks follow comments by President John Dramani Mahama, who recently revealed that both the Finance Minister and the Bank of Ghana Governor estimate the cedi’s real value to lie between GH¢10 and GH¢12 to the US dollar — a significant recalibration of the currency’s fair market valuation.
According to Mr Terkper, the stabilisation plan encompasses boosting foreign exchange reserves, improving export receipts, and enforcing expenditure discipline across government institutions. These efforts, he said, are essential for underpinning long-term macroeconomic stability.
The announcement comes as the cedi shows early signs of recovery following months of depreciation driven by high inflation, fiscal pressures, and global market headwinds. Nonetheless, concerns remain regarding the durability of the currency’s gains, particularly in the face of lingering external shocks and debt vulnerabilities.
Market observers have responded with measured optimism, with analysts noting that the success of the cedi management strategy will largely hinge on consistent policy execution and credible communication.
Further details on the government’s exchange rate framework and fiscal outlook are expected in the forthcoming mid-year budget review, which is anticipated to clarify the path forward on currency stabilisation and debt sustainability.
