Economist and banking consultant, Dr. Richmond Atuahene, says the recent rise in the value of the Ghana cedi is not just because of the government’s gold-for-oil policy.
He explained that the cedi’s strength comes from many factors working together.
“The cedi is not rising because of gold alone,” he said. “Let me tell you, remittances have increased. People forget that.”
He said more money is coming into Ghana from Ghanaians living abroad. This has given banks more dollars and helped them get more cedis, which supports the currency’s stability.
Dr. Atuahene also pointed to high cocoa prices as another big reason. “Last year, cocoa was selling at $4,825 per tonne. Now, it’s around $8,000,” he revealed.
He added that government policies are also playing a key role. These include: Spending control (fiscal discipline) and Tighter money rules to control inflation (monetary policy)
“All these factors matter,” he said. “We shouldn’t focus only on gold. Remittances and exports are helping banks and the economy.”
Dr. Atuahene urged Ghanaians and leaders to look at the bigger economic picture. He said the cedi’s strength is the result of good planning, strong exports, and smart policies.