FX Leakages, not Imports, Driving Cedi Depreciation as Ghana’s $5.1bn Trade Surplus Eroded by $7.96bn FX Outflows
Chief Executive Officer of Dalex Finance, Joe Jackson, has attributed the persistent depreciation of the Ghana cedi to structural foreign exchange leakages rather than the widely held view that excessive imports over exports are the primary driver.
Speaking during a Special X Space discussion on “Ananse Stories About the Economy of Ghana,” hosted by NorvanReports in collaboration with the Economic Governance Platform on Sunday, April 12, 2026, Mr Jackson argued that significant outflows from service imports, profit repatriation, and debt servicing continue to erode Ghana’s foreign exchange gains.
Providing an analysis based on 2024 data, he explained that although Ghana recorded a strong trade surplus of $5.1 billion, this was largely offset by substantial financial outflows. According to him, net service imports alone accounted for $3.89 billion, representing payments to foreign entities for services rendered within the country.
He further noted that profit repatriation by foreign-owned firms operating in Ghana amounted to $2.98 billion over the same period. Combined, these two components resulted in an outflow of over $6.8 billion, effectively exceeding the country’s trade surplus.
“When you add net service imports and profit repatriation, you realise that these two items alone overwhelm the trade balance,” he stated.
Mr Jackson added that debt servicing obligations further compound the pressure on Ghana’s foreign exchange reserves. He indicated that debt service payments for 2024 stood at approximately $2 billion, bringing total outflows from these key components to about $7.96 billion.
The Dalex Finance CEO maintained that such leakages significantly diminish the country’s usable foreign exchange, thereby exerting downward pressure on the cedi.
“Maybe the issue is not that we import too much. The issue has to do with the leakages. Had we blocked some of the leakages, just maybe the cedi would have appreciated,” he remarked.
His comments contribute to ongoing policy discussions around exchange rate stability, with increasing calls for a broader assessment of foreign exchange management beyond the conventional focus on trade balances.
