Cedi recovery has brought respite and confidence to Ghana’s economy – GUTA

The Ghana Union of Traders’ Associations (GUTA) has said the strength that the Cedi is gaining against the Dollar has brought hope to the business community in recouping some of the lost capital during the last couple of years.

Generally, GUTA said the recovery of the Cedi has brought some level of respite and confidence to the economy.

In a statement, the traders association said “We wish to highly commend the Governor and his team for efficiently managing the forex market to this extent. We believe that the fiscal discipline that has been adopted by the Government also contributed to this feat.

“This has brought hope to the business community in recouping some of the lost capital during the last couple of years. Importantly, it has also brought a positive speculation and predictability around the foreign exchange space, thereby eroding the notion that the foreign currency is a store of value in the Ghanaian community.

“We, therefore, encourage the Government, especially the Central Bank, to continue with this laudable effort. These prudent measures, if sustained would lead to full economic recovery and make businesses competitive, increase productivity, as well as alleviate the high cost of living in the country.”

Recently, the Governor of the Bank of Ghana (BoG), Dr Johnson Asiama said that the recent stability of the local currency was not because the central bank is directly intervening with its dollar reserves.

Dr Asiama said that a number of measures have been introduced, which are resulting in stability.

He explained that the BoG is currently implementing some foreign exchange market reforms to shore up the Cedi.

According to data from the Bank of Ghana, the Cedi had appreciated by 2.76% against the dollar as of April 2025. The Cedi has experienced one of its most sustained periods of stability in recent years.

“The stability you are seeing now is not because we are intervening, it is not because we are selling reserves for stability, no. Remember our reserves programmes actually go up by the day, we are building more and more reserves. All that we are doing is strengthening the surge in inflows, a number of foreign exchange market reforms are being implemented,” he said.

He added, “It is the combination of all these factors that you are seeing. So long as we hold that anchor, we will continue to see stability. I made the point earlier that when we say stability, it doesn’t mean the Cedi has to be fixed, it doesn’t mean that the Cedi has to overly appreciate, because that in itself is not good for our export.

“So in real terms, we are observing the trends, we want to make sure the Cedi is not misaligned with the real terms. It stays within some kind of range that is appreciated, a range that is consistent with macroeconomic stability.”

“All I can tell you at this point is that the days of excessive volatility of the Cedi is certainly coming to an end,” he told Joy News.

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