GH¢1 to $1? Not So Fast! — Mahama Warns It Could Crash Ghana’s Export Sector

/ President John Mahama warns that pushing the cedi to GH¢1 per dollar could harm Ghana’s export economy, despite recent currency gains and debt reduction progress.

০ Cedi Appreciation and Debt Relief: The cedi has appreciated by 24.1% in the last four months, contributing to a GH¢150 billion reduction in Ghana’s debt.

০ Export Sector at Risk: Mahama says a GH¢1 to $1 exchange rate is “extreme” and could collapse Ghana’s exports.

০ Debt Sustainability in Sight: Ghana may achieve its 2028 debt sustainability target by the end of 2025 if current trends continue.

Mahama cautions that pushing for GH¢1 to $1 parity may harm exports and destabilize key
sectors of the economy.

President John Dramani Mahama has urged Ghanaians to temper expectations regarding the strength of the local currency, cautioning that an overly ambitious exchange rate of GH¢1 to $1 could have unintended consequences. Speaking at the 60th Annual Meeting of the African Development Bank (AfDB) and the 51st Annual Meeting of the African Development Fund (ADF) in Abidjan, President Mahama emphasized that such a sharp appreciation of the cedi would damage the nation’s export competitiveness.

“Some people say it will come to GH¢1 to $1. No, that’s extreme. We’ll eventually collapse our export sector if that happens,” he stated.

Mahama highlighted that Ghana’s economic reforms and improved global commodity prices have led to a 24.1% appreciation of the cedi against the US dollar in just four months. As a result, the country’s debt stock has been reduced by GH¢150 billion — a significant step toward restoring economic stability.

“If that trajectory continues, the target of reaching 55 to 58 percent debt sustainability by 2028 will be achieved by the end of this year. That gives us the fiscal space to begin investing in the most productive sectors of the economy,” he noted.

READ ALSO: Ghana’s Debt Drops by GH₵150 Billion in 5 Months Amid Cedi Gains - Mahama

President Mahama reiterated the importance of maintaining a balanced and stable currency to manage national debt effectively, as a weakening cedi typically inflates debt levels. He underscored his administration’s focus on boosting domestic revenue, cutting waste, fighting corruption, and enforcing accountability as key pillars for sustainable growth.

“We need to look inward, boost domestic revenue, cut wasteful government expenditure, fight corruption, and introduce stronger accountability in governance. That is the focus of my administration,” he affirmed.

As Ghana positions itself for economic revival, experts suggest that maintaining realistic expectations while supporting sound fiscal management is vital to long-term stability.

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