Economist Dr Mark Assibey Yeboah has argued that Ghana’s current exchange rate is overvalued and is hurting exporters, urging policymakers and the public to look beyond currency stability when assessing economic performance.
Speaking with Umaru Sanda, Dr Assibey Yeboah said the strong cedi, while often celebrated, has adverse consequences for export-oriented institutions and agencies that earn foreign exchange but incur most of their costs in local currency. He explained that exporters are negatively affected when dollar earnings are converted into fewer cedis due to a relatively strong currency.
Citing the Ghana Cocoa Board (COCOBOD) as an example, Dr Yeboah noted that a weaker cedi would significantly boost the organisation’s income. He said that for every additional one-cedi increase in the exchange rate, COCOBOD could earn between GH¢100 million and GH¢120 million more when converting its dollar revenues into cedis.
He added that similar pressures are being felt by other export-dependent institutions, including the Ghana Revenue Authority and players within the gold sector, who benefit when the currency weakens and export proceeds rise in local terms.
Dr Assibey Yeboah said the current exchange rate dynamics favour importers rather than exporters, creating a mismatch with Ghana’s stated ambition of becoming an export-led economy. A strong currency, he argued, lowers import costs but undermines competitiveness and revenue generation for exporters.
He cautioned against excessive fixation on the exchange rate, stressing that such focus can obscure broader structural challenges and policy trade-offs within the economy.