Dr. Mark Assibey-Yeboah, former Member of Parliament for New Juaben South, has described the Ghana cedi as currently overvalued, warning that the situation is adversely affecting exporters and state revenue agencies.

Speaking in an interview with Umaru Sanda Amadu on Channel One TV’s Face to Face on Tuesday, January 13, Dr. Assibey-Yeboah said that while the strength of the local currency is not artificial, it has exceeded an optimal level for the economy.

“Our currency right now is overvalued. It’s not artificial, but there’s an optimum that we have to reach. This exchange rate that people are fixated on is affecting a lot of exporters,” he said.

He pointed to the Ghana Cocoa Board (COCOBOD) and the Ghana Revenue Authority (GRA) as institutions bearing the brunt of the strong cedi.

“If you speak to COCOBOD right now, they are reeling under the strong currency. COCOBOD is not happy about the exchange rate, and GRA is not, as it’s affecting their revenues. All exporters are reeling under the currency,” he stated.

According to him, even the Ghana Gold Board (GoldBod) could benefit from a slightly weaker currency.

“Even GoldBod, if the currency weakens some more, they will not incur the losses,” he noted.

Dr. Assibey-Yeboah further explained that a strong currency could make Ghana a less attractive destination for tourists.

“A person coming to Ghana for a vacation, if the dollar is strong, they are not happy. They want to exchange the cedi and get more cedis,” he said.

Touching on the broader economy, the former legislator questioned the emphasis on exchange rate stability in the absence of robust economic growth and job creation.

“Are jobs being created? Is the economy growing? Our economic growth rate is the lowest in West Africa, 4.1%,” he said.

While acknowledging Nigeria’s growth rate of 3.9%, Dr. Assibey-Yeboah argued that such comparisons should factor in the size of Nigeria’s economy.

“Somebody will mention Nigeria. That’s 3.9%. But Nigeria has a huge base. So if you are measuring economic growth, their denominator is big. Save Nigeria,” he said.

He concluded that Ghana’s current growth performance places it near the bottom of the sub-region and called for a shift in policy focus.

“Ghana is last but one in West Africa. So if I’m looking at the economy and I’m advising, I would say you should not be fixated on the financials and the exchange rate. Grow the economy. If the economic growth rate is around 7%, 8%, then you are creating jobs,” he added.