Akufo-Addo’s role in the artificial cedi stability is indisputable — Facts do not bend to political convenience

One of the most unwise arguments is ridiculing experts who claim the current stability of the cedi is artificial, while also noting that Akufo-Addo's administration plays a part in maintaining it. Supporters of the government should remember that individual ignorance doesn't mean everyone is ignorant. Economic situations are often more complex than political talk suggests.

To start with, the Bank of Ghana (BoG) upped its foreign exchange actions in April 2025, when the US dollar was roughly GH¢14.90. These vigorous actions were possibly helped by the foreign exchange reserves gathered before the change of government. Ghana reportedly held around US$9 billion in reserves by the end of the Akufo-Addo period.

Without enough reserves, the BoG would have had big challenges financing actions on that scale. This isn't a support of the actions; it's just an acknowledgment of the economic conditions that made them possible. Foreign exchange market moves by central banks aren't rare or inherently bad. Central banks usually act in the foreign exchange market to reduce too much change and keep things working well.

Our main worry hasn't been if these actions will happen, but how big, lasting, and how they could affect the whole economy. Giving about US$1 billion every month into the secondary foreign exchange market is a very strong way. Besides worries about it lasting, too much reliance on such actions might take away focus from the changes needed to make the country make more things itself and sell them better.

We shouldn't think managing the symptoms is the same as fixing the real problems. Calling currency stability "artificial" means it depends on the central bank doing a lot, not because the economy is getting better and can make more money. This doesn't mean every action from a bank is artificial or not good. What matters is whether the stability can keep going without the central bank giving a lot more money.

The Bank of Ghana's ability to keep going with its actions also depended on things that weren't under its direct control. First, the big increase in gold prices in 2025 helped Ghana make more money from selling gold. This helped the country handle money problems. Second, Ghana's plan to change its big loans made things a bit easier by taking some stress off paying back the loans.

This reminded us that the economic work Akufo-Addo's government did is still important when we look at how the cedi is doing now. The plan to make the debt easier to pay off didn't get rid of the country's loan promises; it just changed when they happened and how they were paid. As the help from the plan goes away and the payments for the loans start again, the BoG might have a harder time keeping up the same level of actions, especially if the money from outside the country isn't as strong.

The idea is that we should think about when and how big these problems will be, based on Ghana's plan to pay back loans and future money from outside the country. The main point is that currency stability can't last forever if the central bank keeps giving out dollars endlessly. A more lasting solution is to make the country make more things, not need as many things from other places, and be better at selling things abroad.

When a country makes more of what it needs, it needs less foreign money. If it also sells things that other countries want, it can bring in money to pay for what it needs. This makes it easier for the money to stay strong. Ghana has had times when the money was stable because of good things happening outside the country and some actions from the government.

So, just because the cedi is worth more now doesn't mean the country's big problems are solved. The real test is if the money can handle new problems, more money needed to pay back loans, and changes in the value of things like gold when they happen. If something like the money problem in 2022 happened again, the cedi could have big problems.

How much trouble it would have depends on how strong Ghana's money supply is, how much it sells things abroad, how much money it makes from the government's spending, and what the government decides to do. The BoG's idea to let people trade directly with China using the cedi is a big step. By not needing to change the cedi into another money for some trades, this could help make things cheaper and need less US dollars.

But how good it is will depend on how the trade works, how the two countries trade with each other, and how much it helps reduce Ghana's need for foreign money. The GoldBod also plays a part in making gold and moving money around.