The Ghanaian Parliament’s Minority faction has launched a sharp attack on the government’s handling of the nation’s foreign exchange market, characterizing the situation as severely unstable and mismanaged. They argue that the government lacks a coherent strategy to address the cedi’s persistent decline, leading to significant economic distress for businesses and importers. This critique stems from the Finance Minister’s recent assertion during the Mid-Year Budget Review that the cedi has stabilized, a claim the Minority vehemently disputes. They contend that the Minister’s optimistic portrayal of the forex market is detached from the harsh realities faced by businesses grappling with currency volatility and accessibility issues. The Minority’s concerns highlight a growing disconnect between official pronouncements and the lived experiences of economic actors within the Ghanaian marketplace.
At the heart of the Minority’s criticism is the widening disparity between the official interbank exchange rates and the rates offered by forex bureaus, coupled with a significant shortage of dollars within commercial banks. This discrepancy creates a challenging environment for businesses reliant on imports, who struggle to secure the necessary foreign currency to conduct their operations. The Minority alleges that the government’s lack of a clear and consistent forex policy has exacerbated these challenges, leaving businesses vulnerable to unpredictable fluctuations and hindering their ability to plan and operate effectively. They argue that this volatile situation fuels uncertainty and undermines investor confidence, further contributing to the cedi’s depreciation.
The Minority also accuses the Bank of Ghana of covert interventions in the forex market, injecting substantial amounts of dollars while publicly denying any such actions. They point to a revelation by the International Monetary Fund (IMF) that the Bank of Ghana injected over US$1.4 billion into the market in the first quarter of 2025 alone. The Minority criticizes this lack of transparency, asserting that it contributes to market instability and erodes trust in the central bank’s management of the forex market. They argue that such opaque interventions create an uneven playing field and hinder the ability of market participants to make informed decisions, ultimately exacerbating the existing challenges.
The Minority’s overarching argument is that the current forex crisis is symptomatic of broader economic mismanagement by the government. They contend that the lack of a clear and transparent forex policy, coupled with the Bank of Ghana’s clandestine interventions, reflects a deeper systemic issue in economic governance. They warn that this lack of transparency and strategic direction is undermining market confidence and fueling the cedi’s continued decline. The Minority calls upon both the Finance Ministry and the Bank of Ghana to implement structured and transparent reforms to address the root causes of the forex crisis and prevent further economic deterioration.
The Minority’s demands center on the need for greater transparency and a more structured approach to managing the forex market. They advocate for a clear and publicly available framework for interventions, ensuring that market participants have access to the information necessary to make informed decisions. Furthermore, they call for greater accountability and oversight of the Bank of Ghana’s activities in the forex market to ensure that interventions are aligned with stated policy objectives and contribute to market stability. The Minority stresses that restoring confidence in the forex market requires not only addressing the immediate challenges but also implementing long-term reforms to strengthen the underlying economic fundamentals.
In essence, the Minority’s critique paints a picture of a forex market in disarray, characterized by volatility, opacity, and a lack of clear direction. They argue that this situation is a direct consequence of the government’s mismanagement of the economy and its failure to implement coherent and transparent policies. They warn that without urgent and decisive action, the situation will continue to deteriorate, further harming businesses and undermining the country’s economic prospects. The Minority’s call for reforms underscores the urgency of addressing the forex crisis and the need for a more strategic and transparent approach to managing Ghana’s economy.
