John Dramani Mahama has defended his administration’s economic record, declaring in Parliament that the government did not “arrest the dollar” but instead strengthened the cedi through disciplined fiscal and monetary measures.
Delivering his address to the House, President Mahama said Ghana’s economic confidence had returned, with private businesses “breathing again” after years of turbulence.
He described December 19, 2022 — when Ghana declared a debt default and suspended payments on both domestic and external obligations — as “one of the darkest days in Ghana’s economic history.” According to him, the country’s debt had become “a shackle on our economic progress,” pushing the nation into hardship.
The President said his administration responded with concrete action rather than rhetoric, establishing sinking funds, restructuring obligations and pursuing bilateral agreements to ease the burden.
As a result, he reported that public debt had fallen by GH¢82.1 billion, reducing the debt-to-GDP ratio from 61.8 per cent to 45.3 per cent — a development he described as one of the sharpest fiscal corrections in Ghana’s history.
He further disclosed that the government settled a US$709 million Eurobond ahead of schedule in January and completed US$1.4 billion in debt service obligations for 2025.
On inflation, Mr Mahama said the country inherited a peak rate of 54.1 per cent at the end of 2022. Through fiscal consolidation, currency stabilisation and disciplined monetary policy, he said inflation declined from 23.5 per cent at the end of 2024 to 3.8 per cent over 13 consecutive months by January 2026.
“These are not just statistics,” he stressed. “They translate into the reality of a parent being able to put food on the table and businesses creating opportunities for our young people.”
The President noted that food inflation fell significantly, while inflation for locally produced goods also dropped sharply.
Fuel prices, he added, declined from GH¢15.2 per litre to GH¢9.97, bringing relief to millions of motorists and commuters.
Turning to the exchange rate, Mr Mahama addressed speculation about currency controls.
“We did not arrest the dollar,” he said. “We strengthened the cedi to put up a good fight against the other currencies.”
He reported that the cedi appreciated by 40.7 per cent against the US dollar, 30.9 per cent against the British pound and 24 per cent against the euro.
According to the President, the economic turnaround has been broad-based, with all sectors witnessing improvement in the first year of his return to office.
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