President John Dramani Mahama has described as unrealistic the demand by some Ghanaians for the US dollar to be exchanged at GH¢1.

According to him, such a drastic appreciation of the cedi would be extreme and could severely damage Ghana’s export sector.

“Some people say it will come to GH¢1 to $1. No, that’s extreme. We’ll eventually collapse our export sector if that happens,” the President said.

President Mahama had earlier indicated that Ghana’s total debt had been reduced by GH¢150 billion, largely due to the recent appreciation of the cedi.

He stated that if this positive trajectory continues, Ghana could reach its debt sustainability target by the end of the year.

He made these remarks during a high-level presidential session at the 60th Annual Meeting of the African Development Bank (AfDB) and the 51st Annual Meeting of the African Development Fund (ADF) in Abidjan.

“If that trajectory continues, the target of reaching 55 to 58 percent debt sustainability by 2028 will be achieved by the end of this year. That gives us the fiscal space to begin investing in the most productive sectors of the economy,” President Mahama said.

Ghana’s local currency, the cedi, has appreciated by 24.1% against the US dollar over the past four months, driven by improved fiscal policies and strong global commodity prices.

The President noted that a weaker cedi typically results in an increase in the country’s debt stock, emphasising the importance of a stable currency for effective debt management.

He reiterated his administration’s commitment to restoring economic stability and growth.

“We need to look inward, boost domestic revenue, cut wasteful government expenditure, fight corruption, and introduce stronger accountability in governance. That is the focus of my administration,” he added.

SSD/MA