If Forex Injections Alone Could Stabilise the Cedi, Bawumia and His Team Wouldn’t Have Failed – Finance Analyst Fires Back at Former Minister Oppong-Nkrumah

A finance analyst has hit back at former Information Minister Kojo Oppong-Nkrumah’s recent comments defending the government’s foreign exchange interventions, arguing that the persistent depreciation of the cedi shows that forex injections alone are not a sustainable solution.

According to the analyst, the government’s repeated reliance on Bank of Ghana interventions to stabilise the local currency reflects weak economic fundamentals rather than sound fiscal management.

“If forex injections alone could stabilise the cedi, then Vice President Dr. Mahamudu Bawumia and his Economic Management Team wouldn’t have failed,” the analyst stated, adding that the continuous depreciation demonstrates that “the cedi’s problems are far deeper than liquidity support.”

The response follows remarks by former Minister Oppong-Nkrumah, who defended the government’s approach, noting that periodic dollar injections by the Bank of Ghana had helped reduce volatility in the forex market. He maintained that such actions formed part of a broader effort to ensure exchange rate stability and support import-dependent businesses.

However, the analyst disagreed, stressing that without strong production and export growth, such measures only provide temporary relief.

“You can’t inject dollars into an economy that doesn’t produce enough to earn foreign exchange and expect permanent stability. The cedi’s strength is tied to productivity, not political spin,” he argued.

He further called for long-term policies to expand Ghana’s export base, reduce import dependency, and strengthen fiscal discipline to ensure lasting currency stability.

“The real solution lies in structural reforms—industrialization, agro-processing, and fiscal restraint. Without these, every injection is just a short-term fix,” he emphasized.

The cedi has faced renewed pressure in recent weeks despite measures by the Bank of Ghana to inject liquidity and tighten monetary policy. Economists warn that while such interventions can ease short-term volatility, they fail to address the underlying structural weaknesses of the Ghanaian economy.