The Dean of the University of Cape Coast Business School in the Central Region, Prof John Gatsi, has urged Ghanaians to avoid attributing the recent appreciation of the Ghana Cedi to a single factor, warning that the currency’s performance is the result of a complex interplay of economic and policy-driven elements.

 Prof. Gatsi acknowledged the role of initiatives like the Gold-for-Oil and gold-purchasing programmes, such as Goldbod, in improving forex inflows.

However, he stressed that no single policy or initiative can be solely credited for the cedi’s recent gains.

“You cannot credit the appreciation of the cedi to just one lenient factor.

There are multiple contributors working together,” he stated.

Addressing claims that the cedi’s recent strength is largely due to the gold purchasing policy initiated under the leadership of former Vice President Dr. Mahamudu Bawumia, Prof. Gatsi explained that while such policies may have helped stabilise reserves, they alone cannot explain the current market response.

“If the gold purchasing policy was the sole cause, then we would have seen the same results when they were in power,” he pointed out.

He instead commended the Bank of Ghana for its strategic use of market-driven interventions, which he said have played a more immediate role in shaping investor confidence and improving currency performance.

Prof. Gatsi also highlighted the impact of favourable global conditions such as declining crude oil prices and rising gold prices.

However, he cautioned that these trends only benefit Ghana if local policies are designed to take advantage of them.

“Trade tensions or global price shifts won’t benefit us unless we match them with smart local policy.

It all boils down to effective management and real-time market intelligence,” he explained.

Turning to the broader economic landscape, Prof. Gatsi expressed concern over Ghana’s low export competitiveness.

He called on the government to invest in boosting local production and adding value to exports to reduce the country’s over-reliance on imports.

“When imported goods are more attractive or cheaper than local alternatives, people will always choose the foreign option.

We need to improve the quality, pricing, and marketing of Ghanaian products,” he urged.

He also emphasised the need for stronger enforcement by standard-setting institutions to raise the quality of locally made goods, which he believes would enhance their appeal in both domestic and international markets.

Concluding his remarks, Prof. Gatsi acknowledged concerns about whether the cedi’s appreciation is sustainable.

He argued that rather than merely questioning its durability, efforts must be made to build a resilient economy.

“It is not enough to say this is unsustainable. We need to expand our production base, diversify exports, and support policies that add long-term value to the economy.

Only then can we sustain what we are seeing now,” he said.

He spoke in an interview on Kessben TV’s Maakye show.