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As Ghana grapples with economic challenges, the research team at Puretvonline.com has turned to innovative methods, including seeking insights from artificial intelligence, to propose actionable solutions.
A recent analysis conducted puretvonline.com has outlined a comprehensive strategy to stabilise the cedi and address the country’s economic hardships in 2025.
The findings emphasise the need for a multi-faceted approach combining fiscal discipline, monetary policy adjustments, and structural reforms. Key recommendations include:
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1. Boost Exports and Reduce Imports
The research suggests increasing the export of value-added products, particularly in agriculture, manufacturing, and services, to generate more foreign exchange. Import substitution is also critical, with an emphasis on local production of goods to reduce reliance on foreign imports. Diversifying export markets beyond traditional commodities like cocoa, gold, and oil is another strategy to enhance trade resilience.
2. Enhance Foreign Exchange Inflows
To increase foreign exchange reserves, the study recommends attracting foreign direct investment (FDI) by improving infrastructure and simplifying regulatory processes. Additionally, boosting remittances from the Ghanaian diaspora and investing in tourism are key strategies to bring in much-needed foreign currency.
3. Strengthen Monetary Policy
Building robust foreign reserves and maintaining inflation at manageable levels are essential to stabilising the cedi. A market-driven exchange rate policy, coupled with strategic interventions, could further enhance currency stability.
4. Fiscal Discipline
The research highlights the importance of reducing government borrowing to minimise external debt pressures. Improving revenue collection and cutting nonessential government expenditure are also proposed as ways to balance the national budget.
5. Strengthen Key Institutions
The Bank of Ghana must be empowered with the independence and resources needed to implement effective monetary policies. Combating speculative activities in the foreign exchange market is also critical to preventing unnecessary volatility.
6. Improve Trade Balance
Taking advantage of the African Continental Free Trade Agreement (AfCFTA) to boost regional trade using local currencies is recommended. Additionally, renegotiating trade agreements to favour domestic industries would reduce dependency on imports.
7. Address Structural Economic Issues
The study emphasises the need for reliable and affordable energy to support industrial growth. Investments in industrialisation are also key to creating a resilient economy that is less dependent on imports.
8. Strengthen Public Confidence
Transparent communication about economic policies is crucial to building trust among citizens and investors. Offering attractive interest rates on savings and bonds denominated in cedis could encourage more people to hold onto the local currency.
Puretvonline.com believes that if these measures are implemented with consistency and political will, Ghana can mitigate the depreciation of the cedi and achieve long-term economic stability.
The research underscores the urgent need for coordinated efforts between government, private stakeholders, and financial institutions to turn these proposals into actionable policies, ensuring a brighter economic future for Ghana.
