Ketu North MP Hon. Edem Agbana has credited the strengthening of the Ghanaian cedi to deliberate government policies, rejecting the suggestion that external global factors alone are responsible.
In an assessment of recent economic performance, he emphasized that the gains in the exchange rate were the outcome of fiscal discipline, rising forex inflows, and sound monetary policy under the current administration.
“Government has been very deliberate in our approach to the management of the economy and there is nothing more satisfying than the fact that we get the results for the policies that we are pursuing.
“And everybody can see clearly that where we are today and what we are seeing with how the economy is being managed is a clear departure from what used to be the case under the previous government and that is why we are seeing the results”
Hon. Edem Agbana, Ketu North MP
Agbana dismissed claims that global trade tensions were solely responsible for the dollar’s performance, arguing that Ghana’s unique results point to intentional domestic action and lauded the government for strategically and intentionally managing the economy.
“People have been asking what the magic wand is? Some others have said which particular policies have resulted in this?” he said.
“There are other currencies that are equally depreciating against the cedi – even when you go to a country like Nigeria, the US dollar is still appreciating against the naira,” he said, strongly refuting arguments that the US-China trade tensions could explain the cedi’s performance.
The Three Factors
Agbana identified fiscal discipline as one of three major factors behind the cedi’s appreciation. He highlighted the commitment of the Ministry of Finance under Dr. Ato Forson to using public resources judiciously without compromising key government obligations.
“When Dr. Ato Forson was sworn in, he kept hammering on the fact that he wanted to lead a ministry where there will be fiscal discipline. When we talk about fiscal discipline, we are talking about ensuring that you efficiently use the resources of the state”
Hon. Edem Agbana, Ketu North MP
He stressed that spending had not stopped but had rather been done with responsibility. “Workers are being paid, major projects are being catered for – all government interventions like the School Feeding Programs – are still ongoing.”
Agbana pointed to an unprecedented rise in forex inflows from gold exports as the second major factor. He attributed this performance to GoldBod’s increased exports and accumulation of gold, which has boosted dollar supply in the market.
“As we speak today, in the first quarter of 2025, the forest inflow from our gold exports has hit $5,200,000,000 and that represents over 76% increment from what it was in the first quarter of last year. It tells you that something significant is happening”
Hon. Edem Agbana, Ketu North MP
Agbana named the Bank of Ghana’s monetary policy actions under Governor Dr. Johnson Asiama as the third key reason for the cedi’s gains. He referenced the central bank’s decision to increase the policy rate by 100 basis points.
“When they decided to increase the monetary policy rate by a 100 basis points, some analysts criticized and thought that it wasn’t sustainable but they’ve been able to do it”
Hon. Edem Agbana, Ketu North MP
He concluded that the coordination across institutions, presidency, finance ministry, GoldBod, and the Bank of Ghana, has produced a more transparent economic environment.
“We have a government that is committed to providing a conducive atmosphere for businesses to thrive. We have a government that is committed to the fight against corruption. And you have a bank of Ghana that is not on a reckless printing of currencies to inject into the economy in order to satisfy some political interest”
Hon. Edem Agbana, Ketu North MP
Agbana reinforced his earlier position and scored a political jab by referencing a remark made in the past by the former Vice president Dr. Bawumia. “I agree with Dr. Bawumia’s assertion that ‘the exchange rate will expose you when the fundamentals of the economy are weak.’”
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