Accra: Professor Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER), has attributed the recent appreciation of the cedi to a complex mix of domestic and international factors. Prof. Quartey highlighted that while the cedi had previously faced downward pressure, certain domestic policies were playing a crucial role in mitigating the decline.
According to Ghana News Agency, Prof. Quartey discussed these issues during an interview following the Merian Institute of Advanced Studies in Africa's (MIASA's) 12th Interdisciplinary Fellow Group (IFG12) conference in Accra. The conference, themed 'Cash in Crisis in Africa: Navigating Financial Realities in Times of Disruption,' aimed to explore the interaction between policy, governance frameworks, and crises in shaping cash circulation, accessibility, and utilization in an increasingly digitized African society.
Prof. Quartey noted the government's Gold for Reserves programme as a positive step toward cushioning the impact of global economic instability. He explained that improvements in fiscal discipline indicated the government was currently operating within its means and spending within the limits of its revenue. He emphasized that avoiding excessive deficits reduces the need for borrowing, thereby easing pressure on the cedi.
He praised the improved coordination between the Ministry of Finance and the Bank of Ghana, noting a more unified and transparent approach to economic management. Prof. Quartey observed that the Bank of Ghana's increased public engagement and policy explanations were boosting confidence in the local currency, thereby strengthening the cedi.
Globally, Prof. Quartey pointed to tensions, particularly the trade dynamics between the United States and China, as factors contributing to the weakening of the US dollar. He expressed optimism that as tariff-related disputes eased and international agreements formed, global currency markets were likely to stabilize.
Prof. Quartey urged the government to adhere to its current domestic strategies, warning that any deviation could reverse the progress made. He stressed that continued domestic efforts could lead to further stability in the cedi, whereas deviation might result in renewed depreciation.
