According to the Institute, without firm regulatory oversight and improved market discipline, the local currency’s current appreciation risks being short-lived.

Director of ISSER, Professor Peter Quartey, made the call on the sidelines of the Mastercard Foundation Youth Futures Initiative launch and Stakeholder Engagement held in Accra, stressing the need for consistent macroeconomic policies to anchor confidence in the local currency.

“So to ensure stability in our exchange rate, we have to continue to have the kind of monetary policies we are having now; the Bank of Ghana continues to shore up our gold reserves. Take advantage of the geopolitics because the US Dollar is losing some value, but it may reverse given that now the US has a temporary trade deal with China,” he said.

He added that: ”Then also enforcing the exchange rules ; it is only in Ghana where one can walk to a corner and buy dollar and pound and walk around with it. In other jurisdictions they take your passport so they know what is it going to be used for”.

In recent weeks, the cedi has shown marked resilience, reversing months of depreciation — a development that has reignited public expectations for downward price adjustments, especially for imported goods.

Commenting on demands by the consuming public on the traders to reduce their prices Prof. Quartey opined that: ”Well it’s justified to some extent in the sense that in Ghana we know prices are sticky downwards.

“Anytime exchange rate depreciates quickly traders increase prices but as soon as it appreciates then there is some sluggishness in reducing prices but we also appreciate the fact that some have imported using the old exchange rates.”