Economist Kwasi Nyame-Baafi has questioned the sustainability of the Ghanaian cedi’s recent appreciation, citing discrepancies in gold export figures and reserve accumulation.
His analysis suggests potential short-term measures may be artificially propping up the currency rather than reflecting fundamental economic improvements.
Official data reveals a puzzling gap in gold transactions. While the Bank of Ghana added only 0.8 tonnes to its reserves this year, the central bank’s designated gold trader exported over 20 tonnes. This 19-tonne discrepancy has led Nyame-Baafi to speculate whether the missing gold was converted to US dollars to temporarily strengthen the cedi. “If these are genuine reforms driving appreciation, authorities should have no difficulty explaining them,” he stated.
The government has attributed the cedi’s gains to structural reforms, but Nyame-Baafi’s analysis challenges this narrative. He emphasizes that lasting currency stability requires substantive economic transformation rather than temporary market interventions. His concerns come as Ghana continues its economic recovery following recent fiscal challenges.
Financial experts note these questions emerge at a sensitive time for Ghana’s economy. The unexplained gold export gap could potentially undermine confidence in monetary policy if not properly addressed. With global markets adjusting to shifting trade policies and commodity price fluctuations, Ghana’s economic team faces increasing pressure to demonstrate that the cedi’s strength reflects genuine economic fundamentals.
Ghana’s gold reserves have traditionally served as an important economic buffer, making transparency in gold transactions particularly crucial. The current situation echoes past concerns about resource accounting in developing economies, where proper documentation and oversight of natural resource revenues remain persistent challenges. As the debate continues, market observers await official clarification that could either validate current policies or reveal the need for course correction in Ghana’s economic management approach.
