At What Rate Should the Cedi Stabilize? Prof. Quartey Weighs in on Optimal Level for Economic Benefits

As the debate over Ghana’s optimal exchange rate continues to stir political and economic conversations, a leading economist is suggesting a number that is different from what President John Dramani Mahama has earlier suggested.

Prof. Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER), believes that keeping the cedi stable around 10 to the dollar would serve the country best, not just on paper, but in the real economy where businesses operate and investors make decisions.

In the economist’s view, an exchange rate stable around 10 cedis will help business planning and investors to also make their decisions.

“The discussion has been around what the optimal rate of depreciation or appreciation is; that’s what rates will be optimal. Should it be 10, should it be 12, or 15? But I think anything above 10, and basically stable around 10, will go a long way to help businesses plan, to help investors also plan,” Prof. Quartey said in an interview with Accra-based JoyNews.

His comments come on the back of remarks by President John Mahama, who earlier suggested that an exchange rate of around GH₵12 to the dollar would be a more realistic and manageable target. That comment reignited public debate about what exchange rate level is achievable and also economically beneficial for Ghana’s long-term development.

But Prof. Quartey offers a more grounded take, arguing that the magic number isn’t just about what looks good politically, but what creates predictability.

For many Ghanaian businesses, especially importers, manufacturers, and SMEs, the cedi’s unpredictability has long been a headache. From constantly changing prices of raw materials to struggling with unpredictable cost structures, erratic exchange rates eat into margins and erode confidence.

The economist maintains that it’s not so much about the specific number, but about stability at a manageable level. He believes that once the rate is predictable around 10, businesses can breathe easier. They can forecast, budget, price goods properly, and avoid panic-induced cost hikes.

Investors, both local and foreign, also yearn for consistency. A cedi that swings wildly, even if it’s slightly stronger or weaker, raises red flags around risk, especially for long-term projects that rely on clear cost projections.

Prof. Quartey’s position shifts the conversation from “What rate looks good politically?” to “What level supports real economic productivity?”

In a country where the currency is often seen as a political scoreboard, the ISSER Director’s intervention reminds us that behind every decimal point of the exchange rate are thousands of Ghanaian businesses making tough decisions every day.

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