Renowned Ghanaian economist Kwame Pianim has raised alarm over the detrimental impact of the cedi’s persistent depreciation on the country’s savings and investment culture. Speaking at the UPSA Annual Leadership Lecture on December 11, 2023, Pianim highlighted the stark consequences of the cedi’s instability, stating that:
“The constant depreciation of the cedi has devastated the savings of most Ghanaians and has caused many investments to go down the drain.”
Pianim further elaborated on the ripple effect of currency inconsistencies:
“The erratic performance of the cedi erodes investor confidence, fueling further speculation and exacerbating depreciation.”
He cited the Teachers’ Fund, which he helped establish, as a stark example. This fund, originally envisioned as a billion-dollar haven for educators’ savings, now stands at a diminished value of approximately $900 million due to cedi woes.
Pianim emphasized the urgent need for currency stabilization:
“To revitalize our economy and encourage investment, we must find a way to stabilize the cedi. This will not only restore confidence but also create a favorable environment for long-term savings and investments.”
READ: Dollar to Cedi Exchange Rates: $1 selling between GHS12.10 and GHS12.92
This dire warning from a respected economist underscores the critical need for Ghana to address the cedi’s volatility. Without a stable currency, building a vibrant savings and investment culture will remain a distant dream, hampering the nation’s economic progress and jeopardizing the financial security of its citizens.