Seth Terkper: Government Determined to Keep Cedi at GH¢10 per Dollar

In a strategic move to restore macroeconomic stability, the Government of Ghana is actively working to stabilise the Ghanaian cedi at approximately GH₵10 to the US dollar. This initiative underscores a renewed commitment to fiscal discipline and macroeconomic recovery.

Background and Recent Developments

The cedi has experienced significant fluctuations in recent years. In 2024, the currency depreciated by 19% against the dollar, following a 27.8% decline in 2023. These challenges have been attributed to factors such as high inflation, increased public debt, and global financial uncertainties. However, as of June 2025, the cedi has shown signs of appreciation, emerging as one of the world’s best-performing currencies. This positive trend has been bolstered by improved investor sentiment and positive economic developments.

Government’s Stabilisation Strategy

Seth Terkper, the Presidential Advisor on the Economy and former Finance Minister, outlined a comprehensive strategy to address exchange rate volatility and build investor confidence. The approach combines monetary interventions with structural fiscal reforms and tighter controls on public spending. Key components of the strategy include:

Boosting Foreign Exchange Reserves: Enhancing the country’s foreign exchange reserves to provide a buffer against external shocks.
Increasing Export Revenue: Implementing policies to promote exports, thereby increasing foreign currency inflows.
Enforcing Fiscal Discipline: Maintaining strict controls over public sector expenditures to ensure sustainable fiscal management.

Terkper emphasized that the goal is to achieve a stable exchange rate within a manageable range, aligning policy actions to reach this objective.

Public and Institutional Reactions

The government’s efforts have been met with cautious optimism. Financial markets have responded positively, reflecting increased confidence in the country’s economic direction. However, experts caution that long-term stability will depend on consistent and transparent policy implementation.

The Bank of Ghana (BoG) has been actively monitoring the foreign exchange market to ensure the effectiveness of the stabilisation measures. Governor Dr. Ernest Addison has assured the public that the central bank is committed to maintaining currency stability and addressing any emerging challenges promptly.

Challenges and Considerations

Despite the positive developments, several challenges remain. Inflation continues to be a concern, with the actual rate exceeding the target set by the International Monetary Fund (IMF). Additionally, the country faces a substantial public debt, which requires careful management to prevent potential fiscal constraints. The global economic environment also presents uncertainties that could impact Ghana’s currency stability.

Looking Ahead

The government is expected to provide more clarity on its currency management strategy in the upcoming mid-year budget review. This review will offer an opportunity to assess the progress of the stabilisation efforts and make any necessary adjustments to the policy framework.

In conclusion, while the government’s commitment to stabilising the cedi at GH₵10 to the dollar is a positive step toward macroeconomic stability, sustained efforts and careful management will be essential to ensure long-term success.

For more information on Ghana’s economic policies and updates, visit the official website of the Bank of Ghana.