Banking Consultant and Economist, Dr. Richmond Atuahene, has cautioned against attributing the recent appreciation of the Ghana cedi solely to the government’s gold-backed strategies.
Amid growing public interest in the local currency’s improved performance, Dr. Atuahene said the cedi’s gains are the result of multiple economic forces working together.
Speaking on The Point of View with Bernard Avle on Channel One TV, he said, “The currency is not strengthened because it is only gold. Let me tell you on record, remittances have been revamped in this country. People talk, and they forget.”
He explained that a significant rise in foreign remittances has increased liquidity in the banking sector, improving banks’ access to cedis and supporting overall currency stability.
Dr. Atuahene also cited surging cocoa prices on the international market as another critical factor.
“Don’t forget cocoa. It will shock you to know that a year ago [2024], cocoa was sold at [$]4,825 per metric tonne. Today, go to the market—we’re talking about [$]8,000,” he said.
Beyond remittances and exports, he pointed to macroeconomic policies such as fiscal discipline and tightened monetary policy as important drivers behind the cedi’s resurgence.
“All these things are the factors, in addition to the fiscal discipline, tightened monetary policy, and what have you. So, you can’t lay your hands on just the gold. Let’s get it that remittances are giving lots of banks cedis,” he added.
Dr. Atuahene urged policymakers and the public to adopt a broader view of the economy, stressing that the cedi’s performance should be seen as the outcome of a balanced blend of policies and economic activity.
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