Director of Research at the Institute of Economic Affairs (IEA) Dr John Kwakye has said that fiscal discipline is needed to strengthen the Cedi.
Bloomberg reports that Ghana’s currency is poised for one of the strongest rallies globally after the West African nation’s $3 billion pact with the International Monetary Fund (IMF) gave investors hope it can climb back from last year’s debt crisis.
Bank of Ghana Exchange Rates pic.twitter.com/UuWrbYbueT
— Bank of Ghana (@thebankofghana) June 1, 2023
The cedi was the best performer worldwide against the dollar in the runup to the IMF deal, which was sealed mid-month.
That was the latest in a series of violent swings since Ghana unilaterally suspended payments on most of its external debt in December.
The currency is poised to end the month with a 5.3% advance, the fourth-biggest of about 150 currencies.
Commenting on this in a tweet, Dr Kwakye said “The challenge, as always, is to how to make cedi strength last. That requires economic reforms and financial discipline.”