The Ghanaian cedi is expected to stabilize between GH¢10 and GH¢12 in relation to the US dollar, according to President John Mahama, who describes this as a reasonable value that will benefit importers and exporters while preserving macroeconomic stability.
During a meeting with the Federation of Association of Ghanaian Exporters (FAGE), the president warned against an overly strong cedi, which might hurt export competitiveness, but acknowledged the recent currency increase.
“Some people say the cedi could fall to GH¢4, but we know the true value is not there. If it drops that low, it will kill all export businesses,” he said.
The government believes the cedi’s true worth is between GH¢10 and GH¢12 after consulting with the Finance Minister and the Governor of the Bank of Ghana. The currency rate has already risen above GH¢10 following the previous forex auction, indicating stability.
President Mahama encouraged exporters to take advantage of the favorable rate, pointing out that decreased gasoline prices, port fees, and the cost of raw materials should all increase output.
But he advised importers to switch to local production and import substitution, warning them not to oversupply the market with foreign goods.
Source: newsthemegh.com