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0 Economist and GIMPA lecturer, Dr. Kwasi Nyame-Baafi, has cautioned that the government may be losing focus by placing excessive emphasis on the appreciation of the cedi without considering its broader economic implications.
Speaking on Asempa FM’s Ekosii Sen show, Dr. Nyame-Baafi acknowledged that a stronger currency is generally positive. However, he warned that an over-fixation on the cedi’s rise could have unintended consequences for other key economic variables.
According to him, the current appreciation of the cedi against the dollar appears artificially managed and does not fully reflect market realities.
He argued that such an approach risks encouraging imports at the expense of domestic production, potentially weakening local industries.
Dr. Nyame-Baafi further noted that while declining inflation is a welcome development, it did not occur overnight but stemmed from negotiations and policy processes that began before 2025.
He stressed that artificially managing the currency could ultimately undermine sustainable economic growth.
“If inflation is decreasing, it must have started from a specific point as a result of negotiations that began before 2025. The appreciation of the cedi is positive; however, this government appears to be losing focus. They are overly concerned about the excessive appreciation of our currency without considering its impact on other economic variables.
“This fixation on over-appreciating the cedi is leading to increased imports, which harm and undermine our domestic industries. The cedi’s current performance against the dollar is artificial and does not reflect market realities. Managing the currency in this way is more harmful to the economy than beneficial,” he said.
