Financial analyst Joe Jackson has challenged the prevailing narrative blaming Ghanaian traders for the cedi’s persistent depreciation, arguing that debt repayments and foreign exchange outflows are the primary culprits.
The Dalex Finance CEO made these remarks during a recent Canada Ghana Chamber of Commerce event analyzing Ghana’s 2025 budget.
Jackson dismissed claims that the Ghana Union of Traders Association (GUTA) bears responsibility for the currency’s weakness, noting that Ghana has maintained trade surpluses in recent years. “Our exchange rate problems have nothing to do with trade balances,” he stated. “The real issue lies in the billions of dollars leaving our economy to service debts and foreign investor dividends.”
The finance expert revealed alarming statistics about Ghana’s debt burden, highlighting that by 2020, public debt had reached 76.1% of GDP, with interest payments consuming 47% of tax revenue. These massive foreign currency obligations, Jackson argued, have consistently undermined the cedi’s stability despite positive trade performance.
This analysis shifts focus to structural economic challenges that policymakers must address, particularly Ghana’s heavy reliance on foreign borrowing. While recent months have seen relative currency stability, Jackson warned that sustainable cedi strength requires reducing dollar-denominated debt servicing pressures.
The comments come amid ongoing debates about Ghana’s economic management, with the expert calling for more nuanced understanding of exchange rate dynamics. Rather than targeting traders, Jackson suggested authorities should prioritize debt management reforms and policies that retain foreign exchange within the domestic economy.
This perspective aligns with broader concerns about developing nations’ debt sustainability, particularly as global financial conditions tighten. Ghana’s experience illustrates how excessive external borrowing can create persistent currency vulnerabilities, even when other economic indicators appear favorable. The analysis underscores the need for comprehensive solutions addressing fiscal discipline alongside export competitiveness to achieve lasting currency stability.
