The Vice Chancellor of Methodist University and respected economist, Professor William Baah-Boateng, has stated that while exchange rate movements are important, they should not be seen as the most critical measure of a country’s economic performance.

Speaking on The Point of View on Channel One TV on Monday, September 8, Prof. Baah-Boateng explained that fluctuations in the exchange rate are more a reflection or symptom of underlying conditions in the broader economy, particularly in relation to global trade dynamics.

“Exchange rate is a symptom of how the economy is performing or the undercurrent within the economy,” he said, adding “The exchange rate itself is not the most important indicator, but it is a symptom of how we are dealing with the outside world or global trade and so on.”

He noted that sharp currency appreciation or depreciation signals deeper structural issues or strengths within the economy, including trade imbalances, capital flows, productivity levels, and fiscal or monetary policy impacts.

“So the moment you see the exchange rate appreciating or depreciating, it means something is happening,” he added, suggesting that policymakers should look beyond the numbers to identify and address the root causes of instability.

Prof. Baah-Boateng’s comments come amid heightened public attention in Ghana on the cedi’s performance against major foreign currencies, with many interpreting its movements as a direct measure of economic success or failure.