Chief Executive Officer of Dalex Finance, Joe Jackson, has cautioned that the Ghana cedi could face renewed depreciation if authorities fail to address persistent leakages in the country’s export value chain.
According to him, the long-standing pressure on the local currency is not primarily driven by Ghana’s import appetite, but rather by the country’s inability to retain a significant portion of earnings from its exports.
Speaking at an event organized by the Chartered Institute of Marketing Ghana, dubbed Evening with Joe Jackson under the theme “Ananse Stories about Ghana’s Economy,” he stressed that increasing export volumes alone will not be enough to stabilize the currency.
He explained that Ghana continues to lose substantial value from its exports, reducing foreign exchange earnings.
“We can export all we like, but so long as more than half is going, what is left will not help us. If Ghana continues to retain less than half the value of its exports, then increasing export volumes alone will not strengthen the cedi. It may leave it under even more pressure,” he stated.
Mr. Jackson noted that although the cedi has seen some recent gains, appreciating from levels of around 15 or 17 cedis to about 11 cedis against major currencies, the progress could easily be reversed if structural challenges are not addressed.
“The cedi has come down from the lofty heights of 15, maybe even 17, to now 11, and we’re all excited. As surely as night follows day, if we don’t fix this and we continue to subscribe to that Ananse story, we will see a reversal of our successes,” he warned.
His comments add to growing calls for stronger policy interventions aimed at improving Ghana’s export value retention, a key factor critical to ensuring long-term currency stability.
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Source: www.myjoyonline.com