Economist and finance professor Godfred Bokpin has downplayed the recent strengthening of the Ghana cedi, describing it as the result of undisclosed central bank intervention rather than genuine economic recovery.
“There was an intervention to cause the strengthening. This wasn’t stability, it was a disruption,” he said in a Joy FM interview on June 5, 2025.
He revealed that the Bank of Ghana had quietly managed the exchange rate between GH¢10 and GH¢12 per dollar, without informing the public.
“We knew over a month ago that the cedi would likely stabilise within that range, but it was not communicated to the market,” he noted.
While acknowledging the need for some interventions, Prof. Bokpin stressed they must be accompanied by clear public communication.
“The central bank cannot simply leave the cedi to market forces. But when it chooses to intervene, it must also choose transparency,” he asserted.
He warned that unexplained currency shifts hurt businesses, especially importers and exporters, and urged long-term reforms to support real economic growth.
“Sharp appreciations that are not backed by productivity or structural transformation tend to reverse in months or a year,” he warned.
“Transformation starts with long-term macroeconomic stability, but that must rest on real sector reforms, infrastructure, power, lending, and decent jobs,” he said.
“We need the Bank of Ghana to manage the market, yes, but we also need them to do it openly. You don’t build confidence in the economy with silence,” he concluded.
