{"id":15892,"date":"2026-05-08T11:32:07","date_gmt":"2026-05-08T11:32:07","guid":{"rendered":"https:\/\/gnbcc.net\/?p=15892"},"modified":"2026-05-08T11:32:12","modified_gmt":"2026-05-08T11:32:12","slug":"the-cedi-crisis-the-problem-is-not-what-you-think-joe-jackson","status":"publish","type":"post","link":"https:\/\/gnbcc.net\/the-cedi-crisis-the-problem-is-not-what-you-think-joe-jackson\/","title":{"rendered":"The Cedi crisis, the problem is not what you think \u2013 Joe Jackson"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">At the 2026 Dean of Business School Lecture Series at the University of Professional Studies, Accra (UPSA), economist and CEO of Dalex Finance \u2013 Joe Jackson delivered a bold and unsettling message: Ghana\u2019s exchange rate crisis is widely misunderstood\u2014and until that misunderstanding is corrected, the cedi will remain under pressure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The numbers are striking.<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Between 2016 and 2024, the cedi lost nearly 71percent of its value against the US dollar. Yet in a surprising twist, it rebounded with a 40percent appreciation between 2024 and 2025. The story, Jackson argues, is not simply one of decline\u2014but of dangerous volatility.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But the real insight lies beneath the surface. Contrary to popular belief, Ghana\u2019s cedi is not weak because the country cannot export. In fact, Ghana has consistently recorded positive trade balances in recent years. The problem is not exports\u2014it is what happens after exports.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ghana earns foreign exchange from gold, oil, and cocoa. But much of that value does not stay in the country. It leaks out through service imports, profit repatriation, debt servicing, and capital flight. In 2024 alone, Ghana posted a trade surplus of US$5.1 billion\u2014but lost nearly US$8 billion through these leakages.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In simple terms: Ghana earns dollars\u2014and then sends them right back out. Even more concerning is the scale of the gold sector. Ghana exported approximately US$11.9 billion worth of gold yet retained less than half of that value domestically. Countries like South Africa and Botswana, by contrast, retain a much larger share of export value\u2014even with lower export volumes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This leads to a powerful conclusion: Ghana\u2019s currency problem is structural, not cyclical. To address part of this challenge, the government introduced GOLDBOD\u2014the Ghana Gold Board.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to Jackson, GOLDBOD has delivered meaningful early results. By centralizing gold purchases, aligning local prices with international markets, and formalizing small-scale mining, the initiative has significantly increased gold export volumes and value. Early estimates suggest a potential 75percent increase in export value, with artisanal mining contributions more than doubling.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But there is a catch. While GOLDBOD improves export value retention, it does not address the largest sources of foreign exchange leakage. Service imports, profit repatriation, and debt servicing continue to drain the system. As Jackson puts it, \u201cKudos to GOLDBOD\u2014but the leakages remain.\u201d And even if Ghana solved the leakage problem, another threat looms: inflation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ghana\u2019s inflation surged to 54percent in 2022 and remained elevated through 2024\u2014far exceeding inflation levels in the United States. This gap matters. Over time, higher inflation makes local goods more expensive, encourages imports, raises interest rates, and discourages holding the local currency.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In effect, inflation silently erodes the value of the cedi from within. The conclusion is unavoidable: exchange rate stability requires both external and internal discipline. First, Ghana must retain more of its export value by deepening domestic participation in key sectors, building local supplier capacity, and supporting value addition. Second, the country must control inflation through stronger fiscal discipline and prudent monetary policy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Miss either one, and the cedi remains vulnerable. Jackson closes with a provocative reminder: \u201cA volatile cedi is not just an economic problem\u2014it is a discipline problem in disguise.\u201d For policymakers, the message is clear\u2014and uncomfortable.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ghana does not simply need to export more. It must keep more of what it earns\u2014and stop eroding it at home. Until then, every dollar earned will continue to find its way out. Gold may be Ghana\u2019s strength. But discipline will determine its currency\u2019s future. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Click <strong><a href=\"https:\/\/thebftonline.com\/2026\/04\/30\/the-cedi-crisis-the-problem-is-not-what-you-think-joe-jackson\/\" rel=\"nofollow noopener\" target=\"_blank\">here<\/a><\/strong> for source<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At the 2026 Dean of Business School Lecture Series at the University of Professional Studies, Accra (UPSA), economist and CEO of Dalex Finance \u2013 Joe Jackson delivered a bold and unsettling message: Ghana\u2019s exchange rate crisis is widely misunderstood\u2014and until that misunderstanding is corrected, the cedi will remain under pressure. The numbers are striking. Between<\/p>\n","protected":false},"author":10,"featured_media":15893,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"yes","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[153],"tags":[],"class_list":["post-15892","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-articles"],"jetpack-related-posts":[{"id":18354,"url":"https:\/\/gnbcc.net\/bog-sees-stronger-credit-resilient-cedi-supporting-recovery\/","url_meta":{"origin":15892,"position":0},"title":"BoG sees stronger credit, resilient cedi supporting recovery","author":"Paul N.","date":"August 13, 2026","format":false,"excerpt":"The Bank of Ghana says stronger private sector lending, resilient external buffers and a recovery in the cedi are reinforcing Ghana\u2019s economic recovery. The central bank views these developments as key indicators of improving economic conditions.","rel":"","context":"In &quot;News Articles&quot;","block_context":{"text":"News Articles","link":"https:\/\/gnbcc.net\/category\/news-articles\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/08\/ESQ-Elsie-20.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/08\/ESQ-Elsie-20.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/08\/ESQ-Elsie-20.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/08\/ESQ-Elsie-20.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/08\/ESQ-Elsie-20.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":15682,"url":"https:\/\/gnbcc.net\/cedi-posts-best-q1-in-half-decade\/","url_meta":{"origin":15892,"position":1},"title":"Cedi posts best Q1 in half-decade","author":"Michael Teye","date":"April 17, 2026","format":false,"excerpt":"The cedi is poised for additional declines through year-end even after posting its strongest first-quarter performance since at least 2021, as seasonal import demand and energy payments weigh on a currency that has nonetheless staged one of Africa\u2019s more remarkable recoveries from a debt-crisis low.","rel":"","context":"In &quot;News Articles&quot;","block_context":{"text":"News Articles","link":"https:\/\/gnbcc.net\/category\/news-articles\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/04\/Currency-scaled.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/04\/Currency-scaled.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/04\/Currency-scaled.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/04\/Currency-scaled.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/04\/Currency-scaled.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/04\/Currency-scaled.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":17472,"url":"https:\/\/gnbcc.net\/pwc-forecasts-12-policy-rate-us1-gh%c2%a213-by-2027\/","url_meta":{"origin":15892,"position":2},"title":"PwC forecasts 12% policy rate, US$1-GH\u00a213 by 2027\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0","author":"Paul N.","date":"July 24, 2026","format":false,"excerpt":"PricewaterhouseCoopers (PwC) Ghana forecasts that the Bank of Ghana\u2019s policy rate could decline to 12\u201313% by early 2027, while the cedi may gradually depreciate to around GH\u00a213 to US$1 by the end of 2026. The outlook highlights potential opportunities for lower borrowing costs alongside continued foreign-exchange risks for businesses.","rel":"","context":"In &quot;News Articles&quot;","block_context":{"text":"News Articles","link":"https:\/\/gnbcc.net\/category\/news-articles\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/07\/ESQ-Elsie-22.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/07\/ESQ-Elsie-22.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/07\/ESQ-Elsie-22.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/07\/ESQ-Elsie-22.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/07\/ESQ-Elsie-22.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":13191,"url":"https:\/\/gnbcc.net\/govt-bans-foreign-currency-contracts-a-game-changer-for-economic-sovereignty\/","url_meta":{"origin":15892,"position":3},"title":"Gov\u2019t bans foreign currency contracts, a game-changer for economic sovereignty","author":"Tracy Mensah","date":"October 7, 2025","format":false,"excerpt":"In a bold and far-reaching policy shift, the Government of Ghana has announced that all government contracts must now be priced and executed strictly in Ghana cedis, regardless of funding source.","rel":"","context":"In &quot;News Articles&quot;","block_context":{"text":"News Articles","link":"https:\/\/gnbcc.net\/category\/news-articles\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2025\/10\/2025-08-15_0_CEDI.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2025\/10\/2025-08-15_0_CEDI.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2025\/10\/2025-08-15_0_CEDI.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2025\/10\/2025-08-15_0_CEDI.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":15885,"url":"https:\/\/gnbcc.net\/stability-comes-at-a-cost-ghanas-hard-reset-after-the-2022-crisis\/","url_meta":{"origin":15892,"position":4},"title":"Stability comes at a cost: Ghana\u2019s hard reset after the 2022 crisis","author":"Grace Agorigo","date":"May 8, 2026","format":false,"excerpt":"There is an easy story to tell about a central bank: if it reports a loss, something must have gone wrong. It is neat, political, and completely misleading. Ghana\u2019s recent experience tells a different story, one that is less comfortable but far more accurate. The GH\u00a215.6 billion \u201closs\u201d recorded in\u2026","rel":"","context":"In &quot;News Articles&quot;","block_context":{"text":"News Articles","link":"https:\/\/gnbcc.net\/category\/news-articles\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/05\/ESQ-Elsie-12.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/05\/ESQ-Elsie-12.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/05\/ESQ-Elsie-12.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/05\/ESQ-Elsie-12.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/05\/ESQ-Elsie-12.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":13486,"url":"https:\/\/gnbcc.net\/cedi-stages-comeback-falls-below-gh%c2%a212-to-us1-for-first-time-in-over-a-month\/","url_meta":{"origin":15892,"position":5},"title":"Cedi stages comeback, falls below GH\u00a212 to US$1 for first time in over a month","author":"Michael Teye","date":"October 17, 2025","format":false,"excerpt":"The cedi has strengthened against the US dollar over the past week, falling below GH\u00a212 on the interbank market for the first time in 35 days.","rel":"","context":"In &quot;News Articles&quot;","block_context":{"text":"News Articles","link":"https:\/\/gnbcc.net\/category\/news-articles\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2025\/10\/CEDIS.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2025\/10\/CEDIS.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2025\/10\/CEDIS.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2025\/10\/CEDIS.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/gnbcc.net\/wp-content\/uploads\/2026\/05\/SNBN-3.png","_links":{"self":[{"href":"https:\/\/gnbcc.net\/wp-json\/wp\/v2\/posts\/15892","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gnbcc.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gnbcc.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gnbcc.net\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/gnbcc.net\/wp-json\/wp\/v2\/comments?post=15892"}],"version-history":[{"count":1,"href":"https:\/\/gnbcc.net\/wp-json\/wp\/v2\/posts\/15892\/revisions"}],"predecessor-version":[{"id":15894,"href":"https:\/\/gnbcc.net\/wp-json\/wp\/v2\/posts\/15892\/revisions\/15894"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gnbcc.net\/wp-json\/wp\/v2\/media\/15893"}],"wp:attachment":[{"href":"https:\/\/gnbcc.net\/wp-json\/wp\/v2\/media?parent=15892"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gnbcc.net\/wp-json\/wp\/v2\/categories?post=15892"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gnbcc.net\/wp-json\/wp\/v2\/tags?post=15892"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}