CSPS Seminar: Arresting the depreciation of the cedi

The phrase “arresting the depreciation of Ghana Cedi” became popular among political pundits during the period between 2013 and 2016 when the cedi experienced persistent depreciation and became a talking point in the run-off to the general elections. Between 2016 and 2021, the Cedi’s performance improved.  However, in the last quarter of the year 2022, the Cedi was judged by Bloomberg to be the worst-performing currency among Africa’s top currencies. This reignited the old conversation on the volatility of our currency. Was the “arrest of the Cedi” properly done during the first term of the current administration or was it  mere political rhetoric? This presentation uses data on the depreciation of the local currency (against major international trading currencies) and other macroeconomic indicators to provide an empirical perspective on this policy issue.