Dr. Matthew Opoku Prempeh has welcomed the recent appreciation of the Ghanaian cedi but insists the real question lies in whether this positive development is translating into tangible economic benefits for ordinary Ghanaians.
The 2024 running mate to Dr. Mahamudu Bawumia argued that the improved exchange rate must reflect in the prices of goods and services if it is to be truly meaningful.
“So if Koko was bringing in $1 billion and he was hoping to translate it to 15 billion CEDs, now the same $1 billion Koko is bringing… we’re not giving him 15 billion, we’re giving him 10 billion,” NAPO said, using a hypothetical example to illustrate how revenue projections are being affected by the shift in the dollar-to-cedi rate.
He acknowledged that importers at the ports might be celebrating the reduced cost of bringing in goods due to the cedi’s appreciation, but questioned, “Has it translated to goods and services?”
Turning his attention to the Public Utilities Regulatory Commission (PURC), NAPO expressed concern that despite the significant dip in the dollar’s value both locally and internationally, no emergency meetings had been held to review tariffs, particularly given that nearly 70% of utility pricing is dollar-linked.
He stated, “They are quick to announce tariff increases,” calling out the lack of responsiveness in adjusting tariffs downward when the exchange rate moves in Ghana’s favour.
While urging patience as the government prepares to present its first budget, he emphasized the importance of aligning fiscal planning with current economic realities. “We will see in the first budget… what dollar rate is he going to use?” he asked, referencing the Finance Minister’s previous projection of 15.4 cedis to the dollar in March.
NAPO concluded by stressing the need for stability over volatility. “If you ask any economist… he doesn’t like yo-yoing prices, yo-yoing rates. He wants a steady state because businesses can plan, investors can plan.”
