Cedi Gains Not the Work of One Policy – Prof. Gatsi Urges Government to Sustain Momentum Through Production and Smart Policy
Professor John Gatsi, Dean of the University of Cape Coast Business School, has urged Ghanaians to resist simplifying the causes behind the recent appreciation of the Ghana cedi, warning that no single factor, political or economic, can be credited for the currency’s current performance.
Speaking on Kessben TV’s Maakye show, Prof. Gatsi emphasized that while initiatives like Goldbod have contributed positively, they do not single-handedly explain the strength of the cedi.
“You cannot credit the appreciation of the cedi to just one lenient factor. There are multiple contributors working together,” he stated.
Addressing claims that the recent gains are the result of the gold purchasing initiatives introduced under former Vice President Dr. Mahamudu Bawumia, Prof. Gatsi explained that while Goldbod has helped stabilize gold reserves and strengthen forex inflows, those benefits were not realized when the initiative was first launched.
“If the gold purchasing policy was the sole cause, then we would have seen the same results when they were in power,” he said.
He credited the Bank of Ghana for prudently rolling out multiple market-driven policies, stating that these are what the financial markets are currently responding to.
Prof. Gatsi noted that global conditions, such as a drop in crude oil prices and high gold prices, create opportunities for Ghana, but only if local policy is structured to take advantage of those trends.
“Trade tensions or global price shifts won’t benefit us unless we match them with smart local policy. It all boils down to effective management and real-time market intelligence,” he explained.
On exports, Prof. Gatsi warned that Ghana’s economy still struggles with low competitiveness, urging the government to focus on improving local production and adding value to exports.
“When imported goods are more attractive or cheaper than local alternatives, people will always choose the foreign option. We need to improve the quality, pricing, and marketing of Ghanaian products,” he added.
He called on standard-setting institutions to enforce higher product standards, which would open up Ghanaian goods to new international markets and reduce import dependency.
Prof. Gatsi concluded by saying that while it is valid to question the sustainability of the cedi’s appreciation, those concerns must be matched with action, not doubt. “It is not enough to say this is unsustainable. We need to expand our production base, diversify exports, and support policies that add long-term value to the economy. Only then can we sustain what we are seeing now.”
Written By: Adeline Mumuni
