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Overvalued cedi hurting exporters – Assibey-Yeboah

Ghana cedi

Former New Juaben South MP Mark Assibey-Yeboah says the Ghana cedi has strengthened beyond an optimal level, squeezing exporters, weakening state revenues, and distorting policy priorities.

In an interview with Umaru Sanda Amadu on Channel One TV’s Face to Face on Tuesday, January 13, Dr. Assibey-Yeboah argued that the currency’s current position, while not manipulated, is economically counterproductive.

“Our currency right now is overvalued. It’s not artificial, but there’s an optimum that we have to reach. This exchange rate that people are fixated on is affecting a lot of exporters,” he said.

He identified the Ghana Cocoa Board and the Ghana Revenue Authority as among the hardest hit by the strong cedi, noting revenue pressures across export-facing institutions.

“If you speak to COCOBOD right now, they are reeling under the strong currency. COCOBOD is not happy about the exchange rate, and GRA is not, as it’s affecting their revenues. All exporters are reeling under the currency,” he stated.

Dr. Assibey-Yeboah added that a marginal depreciation could also ease pressures on the Ghana Gold Board.

“Even GoldBod, if the currency weakens some more, they will not incur the losses,” he noted.

Beyond exports, he warned that currency strength could dampen tourism inflows by reducing value for visitors.

“A person coming to Ghana for a vacation, if the dollar is strong, they are not happy. They want to exchange the cedi and get more cedis,” he said.

Turning to the broader economy, the former legislator questioned the emphasis on exchange rate stability without commensurate growth and employment outcomes.

“Are jobs being created? Is the economy growing? Our economic growth rate is the lowest in West Africa, 4.1%,” he said.

He addressed comparisons with Nigeria, cautioning against headline figures that ignore scale effects.

“Somebody will mention Nigeria. That’s 3.9%. But Nigeria has a huge base. So if you are measuring economic growth, their denominator is big. Save Nigeria,” he said.

“Ghana is last but one in West Africa,” he added, urging a shift toward policies that lift growth. “If the economic growth rate is around 7%, 8%, then you are creating jobs.”

The interview also doubled as an endorsement of Kennedy Ohene Agyapong ahead of the NPP’s 2026 presidential primaries scheduled for January 31. Dr. Assibey-Yeboah described Agyapong as the party’s strongest option and said he could not be controlled by any external influence.

He stressed that his position does not reflect animosity toward former Vice President Mahamudu Bawumia, noting he backed Bawumia during the NPP’s 2023 primaries.