Vice Chancellor of the Methodist University of Ghana and economist, Professor William Baah-Boateng, has argued that the stability of the exchange rate is more critical to economic performance than the nominal level of the currency against the dollar.
Speaking at a Roundtable Discussion organised by Channel One TV on the topic “John Mahama 2.0: A Thematic Assessment of Year One” on Tuesday, January 13, 2026, Professor Baah-Boateng noted that public discourse on the exchange rate often focuses excessively on its absolute value rather than its volatility.
“Everybody is talking about the exchange rate and its volatility. We are always quick to say that the exchange rate is too high; it is 14, it is 11, or it is 10. In economic analysis, the level of the exchange rate is not the most important thing; the most important thing is the fluctuation,” he said.
He explained that while the current exchange rate stands at about GH¢10 to one US dollar, historical comparisons put the figure in better perspective.
“Currently, the exchange rate is about GH¢10.00 to $1. But if you go back and you add four zeros, then you are getting GH¢100,000 to $1,” he stated, underscoring the importance of contextual analysis.
Professor Baah-Boateng also referenced Ghana’s recent macroeconomic challenges, particularly the sharp rise in inflation following the COVID-19 pandemic.
“Over the past few years, after COVID, inflation went up to 54 per cent before coming down,” he noted.
Using historical data, he observed that exchange rate movements in earlier periods were relatively more stable.
“From January 2016, there was a fluctuation, but it was not very much,” he said.
According to the economist, both excessive appreciation and depreciation of the currency are harmful to economic planning and investor confidence.
“So, the appreciation or depreciation of the currency is not very good for any economy, but the stability or the momentum of the rate is the most important for the economy,” he explained.
Beyond exchange rate concerns, Professor Baah-Boateng raised concerns about Ghana’s growth trajectory, describing it as erratic and inconsistent.
“We have also had erratic growth. We have not been able to have consistent growth. If you look at it from 2022 Q1 to 2025 Q3, we move up and come down. If we have this kind of instability, it is not good for any economy,” he said.
He stressed that sustained economic stability—both in currency management and growth patterns—is essential for long-term development, investment confidence, and economic resilience.
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