The Ghanaian Parliament’s Minority faction has issued a scathing critique of the government’s handling of the nation’s foreign exchange market, characterizing the situation as a burgeoning economic emergency fueled by persistent dollar shortages. They argue that the government’s optimistic pronouncements about the cedi’s recovery are detached from reality, pointing to a volatile, opaque, and increasingly hostile business environment. The Minority highlights the acute dollar shortage impacting importers, who are publicly expressing their frustrations as they struggle to access the foreign currency necessary for their operations. This scarcity, coupled with the widening gap between official and black market exchange rates, is generating significant anxiety throughout the commercial sector, undermining stability and predictability.
At the heart of the Minority’s criticism is the government’s alleged lack of transparency and strategic planning in managing foreign exchange reserves. They challenge official claims of control over these reserves, citing IMF data indicating substantial market interventions exceeding US$1.4 billion in the first quarter of 2025 alone. The Minority contends that these interventions are ad hoc and lack a structured, rule-based framework, exacerbating market volatility and eroding business confidence. They accuse the government of a reactive, piecemeal approach that fails to address the root causes of the currency crisis. Furthermore, they argue that the mid-year budget review offered no tangible solutions to the deepening crisis, ignoring the urgent need for a comprehensive and sustainable strategy.
The Minority emphasizes the severe impact of FX instability on the private sector, particularly small and medium-sized enterprises (SMEs). These businesses, they argue, are disproportionately affected by the unpredictable exchange rates, lacking the resources to hedge against fluctuations and manage the resulting financial risks. From spare part dealers to food importers, businesses across various sectors are grappling with delays, shortages, and unpredictable pricing, stifling growth and threatening their viability. The Minority paints a picture of a struggling private sector suffocated by the government’s mismanagement of the FX market, with SMEs bearing the brunt of the economic fallout. This situation, they warn, is unsustainable and requires immediate intervention.
The Minority also accuses the government of neglecting the plight of the private sector, seemingly oblivious to the struggles businesses face in accessing foreign currency. This disconnect between official rhetoric and the lived experience of businesses fuels the Minority’s criticism, highlighting what they perceive as a lack of empathy and understanding from the ruling administration. They argue that the government’s focus should be on supporting the private sector, which is the engine of economic growth and job creation, rather than downplaying the challenges businesses face. The current approach, they contend, is not only damaging to businesses but also undermines the long-term economic prospects of the country.
Looking ahead, the Minority proposes a roadmap for a future New Patriotic Party (NPP) administration, emphasizing the need for a fundamental shift in FX management. They advocate for increased domestic production to reduce reliance on imports, a key strategy to mitigate the demand for foreign currency. Furthermore, they call for greater transparency in FX allocation and pricing, ensuring a fair and equitable system that minimizes opportunities for manipulation and corruption. Crucially, they propose a rules-based approach to FX management, creating a predictable and stable environment conducive to business operations and investment.
The Minority concludes with a call for immediate reforms to stabilize the cedi and restore confidence in the economy. They urge the government to acknowledge the severity of the situation and take decisive action to address the underlying issues driving the currency crisis. They emphasize that the current trajectory is unsustainable and will have far-reaching negative consequences for businesses and the broader economy. Their message is clear: the government must prioritize the needs of the private sector, implement sound economic policies, and create a stable and predictable FX market to foster growth and prosperity. They believe that the people of Ghana deserve better than the current economic instability and call for urgent action to address the situation before it spirals further out of control.
