Hopeson Adorye, Director of Field Operations for the United Party, has rejected claims that the Ghana cedi is the world’s worst-performing currency. He stated that the local currency’s depreciation must be viewed within Ghana's economic realities. Mr Adorye spoke on JoyNews’ AM Show on Tuesday, May 26. He acknowledged the cedi’s decline against major foreign currencies.
However, he argued this does not make it the weakest globally. He believes the cedi’s performance requires assessment based on Ghana’s economic structure. Prevailing market conditions are also key factors. Comparisons should not be made with currencies in more advanced economies. Ghana operates a lower-middle-income developing market economy. Its currency performance needs evaluation within this framework. The cedi’s trajectory is not against the standards of highly developed nations.
Mr Adorye defended the Bank of Ghana’s strategy. The central bank seeks to maintain the cedi within a GHS 10 to GHS 12 range against the US dollar. This approach aims to balance currency stability. It also protects the interests of exporters. An excessively strong cedi could harm exporters. It reduces their competitiveness. This lowers earnings from international trade. A significant currency appreciation could create challenges. These challenges affect export-oriented businesses. They also impact the broader economy.
He pointed to the current exchange rate. It is about GHS 11.6 to the dollar. This shows the cedi is within the targeted range. The Bank of Ghana actively manages this range. This management is crucial for economic planning. It impacts businesses and consumers alike. Recent depreciation figures, while concerning, are within a managed band. This reflects a deliberate policy choice by the central bank. The policy aims to foster economic activity. It prioritizes a stable environment for trade.