The President of the Ghana Union of Traders’ Association (GUTA), Dr. Joseph Obeng, has urged the government to exercise strong fiscal discipline and implement prudent monetary policies to preserve the recent appreciation of the Ghanaian cedi, which is currently trading at GHS13.00 to the US dollar.
Speaking on the Citi Breakfast Show on Monday, May 12, 2025, Dr. Obeng stressed that maintaining a stable exchange rate is vital for business confidence, predictability, and long-term economic growth.
“When it comes to how it can be sustained, even as it is at GHS13.00, and it can be sustained for a long time, that is how businesses thrive. But if it goes up, it does not ensure predictability,” he said.
He explained that the durability of the cedi’s strength relies on a combination of government resolve, fiscal responsibility, effective regulatory frameworks, and strategic action by the Bank of Ghana.
“It all depends on the government’s attitude and the fiscal discipline, and what the Bank of Ghana does, together with the control system.
“This time we have the advantage, so whatever fiscal discipline we have to adopt, whatever monetary policy we have to adopt, to make sure that we are able to sustain it,” he added.
Dr. Obeng also warned against economic narratives that could weaken the cedi under the pretext of promoting exports. He cautioned policymakers not to fall for arguments that advocate for a devaluation of the currency as a means to boost export competitiveness.
“With where the cedi is, an economist will go to the government and say that the fall of the dollar does not help exports. So, many confusing theories will come from some of them to confuse the government, and at a point, try to devalue the strength of the cedi, because they want to enhance exports, which is not true,” he said.
Highlighting the government’s drive toward industrialisation, Dr. Obeng emphasized the need for Ghanaian products to remain competitively priced on both local and global markets.
“We have to remain competitive. We are heading towards industrialisation and we do not have to overprice the output of our industries. So, it is important that the government knows the essence of this reduction in the forex to up its agenda on the 24-hour economy,” he stated.
The recent appreciation of the cedi has been met with cautious optimism, with many stakeholders urging policy consistency to avoid a reversal of progress.
Source: citinewsroom.com