Cedi Appreciation Not a Fluke, We’re Massaging It Back to Strength – Adongo
In a fiery one-on-one interview, Chairman of Parliament’s Finance Committee, Isaac Adongo, has dismissed claims that the recent gains of the Ghanaian cedi are simply the ripple effect of global monetary shifts, especially U.S. Federal Reserve policies. Instead, he attributes the cedi’s surprising stability to strategic, intentional interventions spearheaded by Ghana’s Ministry of Finance and the Bank of Ghana.
Calling the idea that the cedi’s performance is tied to U.S. economic policy “ignorant,” Adongo clarified that currency performance is not merely influenced by external markets, but by how well a country manages its own demand and liquidity for foreign exchange.
“Let me tell you how ignorant that is,” he fired. “Your currency, the cedi, is a function of liquidity. If a dollar is selling at a lower rate in the U.S., it means nothing unless that dollar flows into the Ghanaian economy.”
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According to Adongo, Ghana’s economic managers have begun implementing systems that eliminate speculative and precautionary dollar demand, leaving only what he called transactional demand. That means Ghanaians will only be issued foreign exchange when it’s necessary, for example, importing goods, and not for hoarding or hedging.
“We are finding innovative ways to free the dollars that are sitting in people’s rooms back into the economy… You don’t need a dollar to buy fufu or kenkey in Ghana. So we’ll give you the cedi. But if you’re importing from China or the U.S., we’ll give you the dollar. It’s as simple as that.”
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This approach, Adongo says, is not about forcing the cedi into artificial appreciation but about “massaging” it to discover its true value. In colorful language, he likened the process to a shift in political stewardship and economic intent.
“We are gradually massaging the cedi to find its true level. We’re telling it, hey, we are in Ghana now! Akufo-Addo is gone. Bawumia is gone. It’s now Ato Forson and Mahama. And the cedi is beginning to say, ‘Yes sir! Yes sir!’”
Adongo emphasized that both the Ministry of Finance and the Bank of Ghana are collaborating on these reforms to provide temporary relief and build long-term resilience. He clarified that the goal isn’t a dramatic strengthening of the cedi, such as moving from GHS15 to GHS3, but stability around a sustainable benchmark.
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“What we are looking for is stability, not a quantum jump. What we are doing now is getting the cedi to find the level that supports the economy.”
While critics may chalk the recent improvement in the currency to happenstance or external events, Adongo’s message is clear: Ghana’s new economic direction is deliberate, focused, and reshaping the cedi’s future, one policy at a time.
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