Cedi Depreciation Sparks Debate Over Bank of Ghana’s Currency Support, Ahiagbah Slams Artificial Stability

The Ghanaian cedi’s sharp decline in recent weeks has reignited debate over how the currency was previously stabilised. Richard Ahiagbah, Communications Director of the New Patriotic Party (NPP), claims the depreciation exposes what he calls the “artificial inducement” used by the previous Mahama administration and the Bank of Ghana to create a false sense of economic strength. The cedi, which had been praised for strong gains earlier this year, has lost 13 per cent in the third quarter, Bloomberg data shows, the steepest slide globally.

Appearing on Channel One TV’s The Big Issue on Saturday, September 13, Ahiagbah criticised the interventions, arguing they were not rooted in sound policy but short-term measures. “What we’re seeing now is the cedi standing on its own in the marketplace, and its value is depleting,” he said. “The artificial inducement they’ve given to the cedi, we’re losing it. That was financial waste or financial loss, dumping all of those things to create a certain appearance of performance.”

Former President John Dramani Mahama has defended the Bank of Ghana’s approach, saying the interventions were necessary to stop runaway depreciation that disrupted economic planning. At a press briefing on Wednesday, September 10, Mahama said the central bank’s actions in 2024 were meant to slow a 25 per cent depreciation within six months, describing it as a pragmatic step to restore confidence rather than a cosmetic fix.

The Governor of the Bank of Ghana, Dr. Johnson Asiama, has also moved to calm markets, insisting that the recent weakness does not signal a collapse of stability. Speaking at an SME forum in Accra on Thursday, September 11, he said the “modest depreciation” reflects normal market adjustments and seasonal trade patterns, adding that interbank activity and fiscal discipline will reinforce long-term stability.

The cedi’s reversal, after topping global currency rankings earlier this year on the back of strong gold prices, has raised fresh questions about Ghana’s economic resilience. Analysts and business owners alike are watching closely to see whether the current slide signals deeper problems or a painful but necessary step toward a more sustainable exchange-rate regime.

source: citi newsroom