Mahama Urges Stable Cedi Rate to Protect Ghana’s Exporters
President John Dramani Mahama has cautioned that an overly strong Ghanaian cedi, particularly at a rate of GH¢4 to the US dollar, could jeopardize the nation’s export sector. Speaking at a policy dialogue with the Federation of Associations of Ghanaian Exporters (FAGE) on June 3, 2025, in Accra, Mahama emphasized the need for a balanced exchange rate to maintain the competitiveness of Ghanaian goods on the global market.
The cedi has shown remarkable strength in 2025, appreciating by nearly 25% against the dollar, driven by robust gold and cocoa exports and strategic interventions by the Bank of Ghana. However, Mahama warned that a drastic appreciation to GH¢4 per dollar would make exports like cocoa and gold prohibitively expensive, potentially reducing demand and hurting exporters’ revenues.
Mahama, in consultation with the Finance Minister and the Bank of Ghana Governor, advocated for a sustainable exchange rate between GH¢10 and GH¢12 to the dollar. This range, he argued, supports exporters while fostering macroeconomic stability. Recent foreign exchange auctions have already nudged the cedi above GH¢10, signaling a move toward this target.
The President urged exporters to capitalize on the current favorable rate, noting that lower import costs for fuel and raw materials could boost production. He highlighted the government’s commitment to policies that enhance export growth, such as the Gold4Oil program, which has bolstered foreign exchange reserves.
Mahama’s remarks come amid a broader economic recovery, with inflation dropping to 21.2% in April 2025 and international reserves exceeding $10 billion. The government aims to sustain these gains by promoting value addition and trade facilitation to ensure long-term stability for Ghana’s export-driven economy.