Fiscal Discipline Central to Cedi Stability Efforts in 2026, Says Dr Theo Acheampong
Technical Advisor at the Ministry of Finance, Dr Theo Acheampong, says strict fiscal discipline and adherence to approved budgets remain the most critical tools for safeguarding the stability of the cedi in 2026.
Speaking during the NorvanReports and Economic Governance Platform (EGP) X Space themed “Cedi Stability in 2026: Can Ghana Hold the Line After the IMF?” on Sunday, February 8, 2026, Dr Acheampong stressed that markets are less concerned about policy intentions and more focused on execution.
“Markets care about the execution, and execution will come down to the numbers,” he said, noting that the Ministry has made clear commitments in the 2026 Budget to spend strictly within approved allocations.
According to him, the Ministry has tightened expenditure controls by refusing to authorise payments that fall outside approved budget lines. “If what you want us to give you authorisation for is not within your budget, we won’t pay it,” Dr Acheampong stated, adding that this approach has played a significant role in the relative stability recently observed in the foreign exchange market.
He emphasised that even where borrowing becomes necessary, it must be targeted at projects with strong economic returns. “If you have to borrow, it has to be for projects that deliver superior economic returns,” he said.
Touching on exchange rate dynamics, Dr Acheampong highlighted the role of external factors, including movements in the US dollar and global market expectations. He explained that empirical analysis often shows a pass-through effect from dollar appreciation to cedi depreciation, estimated at around five percent on average.
However, he noted that developments on the external front, including the performance of the dollar against other major currencies, helped shape outcomes in 2025. “Fundamentally, it also depends on what happens outside of Ghana,” he added, citing ongoing trade tensions and broader geopolitical developments that influence how markets price emerging market currencies.
Dr Acheampong further warned that the current global environment of heightened geopolitical uncertainty makes it imperative for Ghana to strengthen its internal buffers. “We have to do a lot by ourselves internally to ensure that we have built the relevant buffers to safeguard the currency,” he stated.
