Renowned financial economist, Prof Lord Mensah, has cautioned that the recent appreciation of the Ghanaian cedi may be short-lived if not supported by concrete growth in the country's real economic sectors.
Speaking on JoyNews' The Pulse Show, Prof Mensah acknowledged the cedi's strengthening against the US dollar in recent weeks but stressed that the trend lacks the backing of structural economic fundamentals. "It's not going to run forever," he warned. "If you look at the technical analysis side of it, the dynamics are so sudden, and it's such a sharp drop for a country like Ghana to sustain." He noted that while the current appreciation may reflect efforts to stabilise the currency, it must be viewed within the broader context of Ghana's economic productivity. "We saw an upward surge in the cedi against the dollar, which was a depreciation.
We are now seeing an appreciation, and obviously, these are trends that any currency on the path to stability will go through," he explained.
Prof Mensah pointed out that fluctuations-both upward and downward-are typical in early stabilisation phases.
