ISSER URGES TIGHTER EXCHANGE RATE MEASURES TO MAINTAIN CEDI GAINS

The Institute of Statistical, Social and Economic Research (ISSER) has raised concerns over the ongoing depreciation of the Ghanaian cedi, warning of its far-reaching impacts on the national economy. In its 2024 Mid-Year Budget Review, ISSER revealed that in the first half of the year alone, the cedi fell by 18.6% against the US dollar, 17.9% against the British pound, and 16% against the euro.

Although this pace of depreciation is slower than in previous periods, ISSER emphasized that the cedi’s volatility continues to strain economic activities. According to the institute, the weakened currency has led to increased operational costs, heightened labor disputes, and forced several businesses to either shut down or relocate to more stable environments.

To address these challenges, ISSER is calling on the government to enforce stricter foreign exchange regulations and play a more active role in managing the exchange rate. These measures, ISSER suggests, are essential for sustaining the cedi’s value and ensuring macroeconomic stability.

Meanwhile, the Bank of Ghana (BoG) has taken steps to stabilize the currency through a combination of increased foreign reserves and tight monetary policy. The BoG reports that by late September 2024, the cedi had largely stabilized, thanks to improved liquidity and favorable external conditions.

ISSER’s assessment underscores the urgent need for consistent and proactive economic management to minimize the adverse effects of currency instability on Ghana’s business environment and broader economic outlook.