Ghana cedi slide exposes “structural imbalance” despite improving macro indicators – economist
Ghana’s currency depreciation despite improving macroeconomic indicators reflects deep structural imbalances in the economy, economist Prof Isaac Boadi has said. Speaking on the Asaase Breakfast Show on Monday (25 May), Boadi described the situation as a “striking paradox,” noting that key indicators—including inflatio...
Ghana’s currency depreciation despite improving macroeconomic indicators reflects deep structural imbalances in the economy, economist Prof Isaac Boadi has said.
Speaking on the Asaase Breakfast Show on Monday (25 May), Boadi described the situation as a “striking paradox,” noting that key indicators—including inflation, debt levels and reserves—have improved significantly, yet the cedi continues to weaken.
The cedi has declined by over 10 percent against the US dollar so far in 2026, making it the worst-performing currency in West Africa, according to market data.
Boadi attributed the trend to a persistent mismatch between foreign exchange demand and supply, driven largely by the energy, manufacturing and import sectors.
“Demand for foreign exchange continues to outpace supply,” he said, warning that reliance on limited inflows—mainly from mining and central bank interventions—was unsustainable.
He added that periodic interventions by the Bank of Ghana risk masking underlying weaknesses, with market pressures intensifying whenever dollar injections slow.