The Ghana Union of Traders’ Associations (GUTA) has expressed strong commendation for the Bank of Ghana (BoG) regarding the recent positive performance of the Ghanaian cedi against major international currencies. This appreciation, observed since the beginning of 2025, represents a significant reprieve for businesses, particularly importers and traders who have long grappled with the debilitating effects of currency volatility. GUTA’s statement, signed by its President Dr. Joseph Obeng, highlights the renewed confidence and predictability that the cedi’s stability has brought to the business environment, a stark contrast to the previous years of uncertainty. This stability is attributed to the BoG’s effective management of the foreign exchange market, coupled with the government’s commitment to fiscal discipline.
The cedi’s strengthened position is not merely a numerical improvement; it represents a fundamental shift in market sentiment. For years, the persistent depreciation of the cedi fueled the perception that foreign currencies, particularly the US dollar, offered a safer haven for value preservation. This perception drove individuals and businesses to convert their cedi holdings into foreign currencies, further exacerbating the pressure on the local currency. The recent appreciation, however, has begun to erode this perception. The predictability now associated with the cedi’s performance encourages holding onto the local currency, thereby reducing the demand for foreign exchange and contributing to the cedi’s overall stability.
GUTA’s praise underscores the critical link between a stable currency and a thriving business environment. The volatility of the cedi in previous years made it extremely challenging for businesses, especially those reliant on imports, to plan effectively. Fluctuating exchange rates translated into unpredictable import costs, forcing businesses to constantly adjust their pricing strategies to remain viable. This constant recalibration not only consumed valuable time and resources but also created uncertainty in the market, impacting both consumer confidence and business investment decisions. The current stability, therefore, offers a much-needed respite, allowing businesses to project costs and revenues with greater accuracy, facilitating more informed decision-making and fostering a more conducive environment for growth.
The BoG’s targeted interventions in the forex market, coupled with broader macroeconomic measures implemented by the government, are credited with achieving this stability. These interventions likely involved strategies to increase the supply of foreign currency in the market and manage demand, thereby influencing the exchange rate. The government’s fiscal discipline, which likely encompassed measures to control spending and improve revenue collection, further contributed to macroeconomic stability, creating a supportive environment for the cedi’s appreciation. GUTA emphasizes the importance of sustaining these prudent policies to ensure continued economic recovery and enhance the competitiveness of Ghanaian businesses on both domestic and international fronts.
GUTA’s commendation reflects a broader sense of optimism within the Ghanaian private sector. Businesses are welcoming the cedi’s resurgence as a positive indicator of economic health. The years of currency instability significantly hampered business operations, increasing import costs, eroding profit margins, and hindering growth. The current stability offers a pathway to recovery, enabling businesses to focus on expansion and investment rather than grappling with the constant challenges posed by a volatile currency. This positive trajectory has the potential to stimulate economic activity, create jobs, and improve the overall economic outlook for Ghana.
The appreciation of the cedi marks a turning point in Ghana’s economic narrative. It signals a move away from the instability that plagued the business community for years and ushers in a new era of predictability and confidence. The BoG’s effective management of the forex market, coupled with the government’s commitment to fiscal discipline, has laid the foundation for this positive transformation. Sustaining these policies will be crucial to consolidating the gains achieved and ensuring that the cedi’s stability translates into sustained economic growth and prosperity for Ghana. GUTA’s commendation serves as a testament to the positive impact of these policies and reinforces the importance of continued collaboration between the government, the central bank, and the private sector to build a resilient and thriving economy.
