Forex injections cannot sustain cedi stability indefinitely — Tweneboa Kodua

The Member of Parliament for Manso Nkwanta, Tweneboa Kodua Fokuo, has questioned the sustainability of the government's recent economic gains, arguing that the stability of the cedi and improvements in key macroeconomic indicators have been achieved through short-term interventions rather than lasting structural reforms.

Speaking in an interview on Channel One TV on Saturday, July 25, 2026, he cautioned that relying on foreign exchange interventions to support the local currency cannot be maintained indefinitely.

"The cedi has been stable for a while, but that stability is now giving way. The most important question is how we achieved that stability and whether it is sustainable,” he affirmed.

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Fokuo argued that while the cedi had depreciated by about eight to 10 percent this year, the real concern was the method used to maintain its earlier stability.

"If the stability is being achieved through the continuous dumping of foreign exchange into the market, then you have to ask: for how long can that be sustained? You cannot keep dumping forex into the market forever. It comes at a cost to the nation,” he said.

The MP said government should focus on structural economic reforms that strengthen productivity and generate foreign exchange naturally, rather than depending on interventions in the forex market.

He also challenged the government's celebration of a declining debt-to-GDP ratio, arguing that the improvement was largely a consequence of exchange rate movements rather than significant debt reduction.

"Debt-to-GDP has come down, but not because government has substantially paid off our debts. More than half of Ghana's debt is denominated in foreign currency. When the cedi stabilises or appreciates, the cedi value of those debts automatically falls, reducing the debt-to-GDP ratio,” he explained.

According to him, presenting the lower debt ratio as a major government achievement without acknowledging the impact of exchange rate movements paints an incomplete picture of the economy.

Fokuo further criticised government revenue performance, saying it had failed to meet its own targets despite positive macroeconomic figures.

"We have fallen short of the revenue targets we set for ourselves. Those are realities that cannot be ignored, he said.

He also questioned the significance of the reported 6.4 percent GDP growth rate, insisting that headline figures should translate into tangible improvements in the lives of ordinary Ghanaians.

"It's not just about putting out impressive numbers. The real issue is whether those numbers are being reflected in the economy and improving the lives of the people,” he questioned.

However, he maintained that sustainable economic progress would depend on policies that expand production, improve productivity and strengthen economic fundamentals rather than temporary measures designed to support macroeconomic indicators.

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