The appreciation of the cedi is a blessing in disguise - Dr. Frank Bannor breaks down 2026 budget

Dr. Frank Bannor has stated that the recent appreciation of the cedi is “a blessing in disguise,” arguing that it exposes a deeper issue regarding the Bank of Ghana’s (BoG) approach to stabilizing the currency.

Speaking on GTV breakfast during a detailed analysis of the 2026 budget presented by Finance Minister Hon. Ato Forson, Dr. Bannor revealed that the central bank has been injecting significant amounts of money amounting to over $7 billion into the economy to hold the cedi firm.

He believes this intervention, though temporarily beneficial, reflects funds being diverted from other critical areas such as the much-discussed 24-hour economy initiative which was NDC’s flagship campaign message.

Dr. Bannor explained that while currency stability brings relief to importers, consumers, and government financing obligations, the method of achieving it raises important questions about long-term sustainability.

According to him, the resources used to prop up the cedi could have been channeled into stimulating productive sectors that would naturally strengthen the currency over time. He noted that the 24-hour economy proposal, aimed at expanding industrial output and employment through round-the-clock operations, represents one of the most transformative initiatives the government could invest in.

However, the continuous financial support used to defend the cedi, he stressed, limits the government’s ability to make such strategic investments.

Despite these concerns, Dr. Bannor maintained that the temporary stability achieved still offers Ghana an opportunity to realign its priorities. Ultimately, he argued, the cedi’s current stability should serve as a wake-up call for Ghana to reconsider how best to allocate scarce resources for maximum economic impact.