Felix Kwakye Ofosu Slams Minority Over Catastrophic Ghanaian Cedi Collapse at End of Their Tenure

Discover how Ghana’s Minister for Government Communications, Felix Kwakye Ofosu, held the Minority accountable for severe Cedi depreciation in a heated 2026 Budget debate. Learn the facts on currency collapse, market impacts, and economic metrics.

Introduction

In the midst of Ghana’s 2026 Budget debate, Minister for Government Communications Felix Kwakye Ofosu delivered a pointed critique against the Minority, accusing them of attempting to distance themselves from the Ghanaian Cedi depreciation that marked the end of their tenure. He described the currency’s decline as a “catastrophic collapse,” highlighting how the Cedi lost substantial value against major global currencies like the US dollar. This exchange underscores ongoing political tensions surrounding Ghana’s economic stewardship, particularly the volatility of the Ghanaian Cedi.

The debate brings renewed focus on key economic indicators such as exchange rates, which serve as barometers of national financial health. Kwakye Ofosu’s remarks emphasize verifiable data from forex bureaus, where the US dollar reportedly reached GH¢17 by the time the previous administration exited office. This introduction sets the stage for a deeper dive into the Ghanaian Cedi collapse, its ripple effects, and lessons for policymakers and citizens alike.

Analysis

Context of the 2026 Budget Debate

The 2026 Budget debate in Ghana’s Parliament provided a platform for discussing fiscal policies amid persistent challenges like inflation and currency depreciation. Felix Kwakye Ofosu, speaking on behalf of the government, directly addressed the Minority’s narrative, arguing that they could not evade responsibility for the Cedi’s performance under their watch.

His statements were rooted in historical exchange rate data, pointing to a period of acute Cedi weakening that affected everyday Ghanaians, businesses, and investors. Currency depreciation occurs when a local currency loses value relative to foreign ones, often due to factors like trade imbalances, high import reliance, and external pressures such as global commodity prices—issues well-documented in Ghana’s economic reports from the Bank of Ghana.

Kwakye Ofosu’s Core Arguments

Kwakye Ofosu asserted that the depreciation was not marginal but “historical” in scale. He cited specific evidence: forex bureaus selling the US dollar at GH¢17 upon the previous government’s departure. This figure aligns with Bank of Ghana records showing the Cedi-USD rate surpassing GH¢15 in late 2022 and fluctuating thereafter, exacerbated by economic shocks.

Pedagogically, understanding Cedi depreciation causes involves grasping supply-demand dynamics in forex markets. Ghana’s heavy dependence on imports for fuel, food, and machinery increases dollar demand, pressuring the Cedi. Kwakye Ofosu framed this as mismanagement, urging reliance on “metrics that are not subject to interpretation,” such as official exchange rates published by the Bank of Ghana.

Economic Ripple Effects

The Cedi’s collapse created widespread impacts. Businesses faced higher input costs, leading to price hikes. Investors grew wary, contributing to capital flight. Ordinary citizens experienced eroded purchasing power, with imported goods becoming prohibitively expensive. Kwakye Ofosu noted these effects permeated the entire market system, a claim supported by economic analyses from institutions like the IMF, which have repeatedly flagged Ghana’s currency volatility.

Summary

Felix Kwakye Ofosu’s address during the 2026 Budget debate rebuked the Minority for downplaying the Ghanaian Cedi’s catastrophic collapse under their administration. Key evidence included the US dollar trading at GH¢17 in some forex bureaus at handover. He called for accountability based on indisputable economic data, stressing that exchange rate performance reflects stewardship quality. This summary encapsulates the debate’s essence: a clash over fiscal legacy amid Ghana’s ongoing battle with Cedi depreciation.

Key Points

Practical Advice

For Businesses and Investors

To mitigate Ghanaian Cedi depreciation risks, businesses should diversify suppliers, hedge currencies via forward contracts offered by Ghanaian banks, and explore local alternatives to imports. Investors can monitor Bank of Ghana’s weekly forex auctions and consider dollar-denominated assets during volatility spikes.

For Everyday Citizens

Individuals can protect savings by holding a portion in stable foreign currencies through licensed forex bureaus or mobile money platforms. Budget for imported essentials like rice and fuel by stocking up during relative stability. Engage in export-oriented activities, such as agriculture, to benefit from any Cedi weakening that boosts competitiveness.

Track real-time rates via the Bank of Ghana app or websites like GhanaWeb for informed decisions. Building financial literacy on concepts like inflation pass-through from depreciation empowers proactive responses.

Government and Policy Recommendations

Policymakers should prioritize export diversification, gold reserve utilization for forex stability, and fiscal discipline to rebuild investor confidence, drawing from successful stabilizations in peer economies like Kenya.

Points of Caution

Political debates like this one can amplify partisan views, so cross-verify claims with primary sources such as Bank of Ghana exchange rate archives. Forex bureau rates may vary from interbank rates due to premiums, so official data provides the truest picture. Avoid speculative trading without expertise, as Cedi volatility has led to losses for unprepared traders. Finally, economic recovery is multifaceted; no single administration bears sole blame for structural issues like Ghana’s current account deficits.

Comparison

Cedi Performance Across Administrations

Historically, the Ghanaian Cedi has depreciated steadily: from GH¢1.5/USD in 2010 to over GH¢15 by 2022. Under the NPP administration (2017-2024), the Cedi lost about 50% value amid COVID-19 and debt crises, peaking near GH¢17 interbank in late 2024 per Bank of Ghana data. Comparatively, the prior NDC era (2009-2016) saw annual depreciations averaging 15-20%, influenced by oil price shocks.

Data sourced from Bank of Ghana historical rates. Current trends under the new administration show stabilization efforts, but global factors persist.

Vs. Regional Peers

Ghana’s Cedi has underperformed peers like the Nigerian Naira (which hit 1,600/USD) but mirrors volatility in Zambia’s Kwacha. Kenya’s Shilling stabilized via reserves, offering a model for Ghana.

Legal Implications

No direct legal implications arise from Kwakye Ofosu’s statements, as they constitute protected political speech under Ghana’s 1992 Constitution (Article 21 on freedom of expression). Exchange rate management falls under Bank of Ghana Act, 2002 (Act 612), mandating transparency but not assigning criminal liability for depreciation. Disputes over economic records remain in parliamentary discourse, not courts.

Conclusion

Felix Kwakye Ofosu’s critique in the 2026 Budget debate spotlighted the Minority’s role in the Ghanaian Cedi’s catastrophic collapse, backed by tangible metrics like the GH¢17 USD rate. This event highlights the imperative of accountability in economic governance. For Ghana to achieve lasting Cedi stability, stakeholders must prioritize data-driven policies, export growth, and unity beyond partisanship. As exchange rates evolve, vigilance and education remain key to navigating future challenges.

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