The Minority Caucus in Parliament has noted that though the local currency, the Cedi is performing well against major world currencies, its purchasing power continues to decline indicating weaker economic fundamentals driven by the current administration’s strategies.
At a news conference in Accra yesterday, which was jointly addressed by the Mohammed Amin Andam, Ranking Member, Finance Committee and former Minister of Finance, Gideon Boako, MP for Tano North and Deputy Ranking Member, Finance Committee, Kojo Oppong Nkrumah, MP for Ofoase Ayirebi and Ranking Member of Economy and Development Committee, the minority emphasised that the government needed to change its approach.
They highlighted that the purchasing power of a currency reflects its buying power at a given time and location, further revealing that the prices of goods and services on the local market have increased, requiring more Cedis to purchase the same items.
“It is instructive to note that the true value of any currency does not lie in its value of exchange but the purchasing power. What is the purchasing power of the Cedi to the ordinary Ghanaian today at Malata market, Techiman market, Abofour market, or the streets of Chorkor, Tudu, Adum and so on?, they quizzed.
They added, “Cement price in January 2025 was GH¢90, however, it was sold in April 2025 at GH¢130.
Sure, a deodorant was sold in January at GH¢35, but it is selling in July at GH¢45. A standard loaf of bread was sold in January at GH¢18, however, it is selling in July at GH¢23.
Bottled water was sold in January 2025 at GH¢28. However, it is selling in July at GH¢36. A ball of kenkey was sold in January at GH¢3 and GH¢5, but it is selling in July at GH¢5 and GH¢7. These are the stark realities of the bread-and-butter issues in the streets of Ghana”, they explained.
These price hikes underscore the need for the government to address the economic challenges facing ordinary Ghanaians.
The Minority’s concerns come on the heels of comments by Finance Minister, Dr. Cassiel Ato Forson, who claimed economic success due to fiscal consolidation efforts.
However, the Minority argues that the government’s approach focuses too much on increasing revenue through taxes, rather than effective spending cuts and debt management.
“We say this because, while government’s spending cuts approach is incoherent, not substantial and completely nebulous, not much is realised from its debt management approach.
“Rather, we have seen substantial efforts at either leisurely introducing new taxes or increasing existing ones”, the group which belongs to the opposition New Patriotic Party (NPP) noted.
In June 2025, the Business Insider Africa reported that Ghana’s Cedi, which briefly held the title of Africa’s best-performing currency in that month, hit a major-stumbling block amid surging demand for U.S. dollars and a sharp decline in physical dollar liquidity at local banks.
According to the Business Insider Africa report, the Bank of Ghana (BoG), which implemented a series of monetary and regulator measures earlier that month including dollar sales and forward auction interventions to stabilise the Cedi, now faces renewed pressure to act swiftly amid deepening currency volatility.
By Stephen Larbi
