The Head of Finance at Merban Capital, Nelson Cudjoe Kuagbedzi, has described the government’s current efforts to stabilise the Ghana Cedi as a deliberate and strategic move to resume debt servicing under improved fiscal conditions.
Speaking on the Citi Breakfast Show on Thursday, June 5, 2025, Mr Kuagbedzi noted that the government appears to be working within a targeted exchange rate band it considers favourable for managing its cashflows and honouring debt obligations.
“This means that they have a target rate that they want to settle on, and they feel that within that target rate, they can comfortably proceed to start paying debt. So, I think it is a well-calculated strategy by the government,” he said.
According to him, this approach signals an intentional effort to create macroeconomic conditions that support predictable fiscal planning and external payments.
“They are clearly trying to intervene in one way or the other to settle the exchange rate within a band, which will be comfortable for the government based on their own cashflow projection, to start paying their debt,” Kuagbedzi added.
He urged the government to seize the current relative economic stability as an opportunity to begin honouring its financial commitments.
“This is the time for them to start paying their debt,” he stressed.
Mr Kuagbedzi’s comments come in the wake of President John Dramani Mahama’s recent engagement with the Federation of Associations of Ghanaian Exporters (FAGE), where he projected that the Ghana Cedi would stabilise within a GH¢10 to GH¢12 range to the US dollar. The President described this band as “a fair value” that balances the interests of both exporters and importers while safeguarding macroeconomic gains.
The Mahama administration is working on a broader economic recovery plan, which seeks to rebuild investor confidence, protect export competitiveness, and enhance fiscal discipline.
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