According to Prof. Godfred Bokpin, an associate professor of finance at the University of Ghana Business School (UGBS), the cedi's appreciation against other major currencies is not based on sound economic principles.

The Ghanaian business community has experienced some respite as a result of the Ghana cedi's increase against the dollar, and the government has received praise for the decision.

The Economist, in an interview with Starr News, claimed that the decision is unsustainable because it is not supported by reliable economic metrics.

“The cedi thrives on technical causes as well as sentiments. So when the sentiment is positive and good the cedi feels okay, but what we can see in the last two weeks is that there is a lot of clarity in terms of Ghana’s economic direction. There is clarity now with Ghana’s debt situation and that debt restructuring is unavoidable even if it’s uncomfortable.

“It is good that you bring the market up to speed. Now the 2023 budget has also brought some form of clarity in terms of the way forward. More importantly, the past week we’ve been talking about whether the Staff-Level Agreement is possible before Christmas. All of these things working together moderate the economic uncertainty. When it happens that way, the positive sentiment reflects on the market,” Mr. Bokpin added.

He continued “That is why we are saying that when you are managing an economy, it is not so much about the technical economy, but the expectations. You have to anchor the expectation along a certain direction and it’s good for the economy. Because in August the cedi lost more than 20 percent on its value purely on speculation.”

Mr. Bokpin further explained that now that expectations on the market have been dealt with there is some stability.

But he cautioned: “People think that with the Staff-Level Agreement the three billion dollar is going to hit the account of the government like next week. To the extent that its cedi sustainability is not driven by economic fundamentals you cannot say that it’s going to last for long.”

IMF programme insufficient to address Ghana's problems - Prof. Bokpin