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Businesses express mixed reactions to cedi stability

Ghana Cedi

Some importers have expressed mixed reactions on the stability of the cedi on their cost of operations.

While some importers confirm that the stability is having a positive impact, others have told Citi Business News government has to do more for the effect to trickle down.

The comments  come at a time that the government is lauding its efforts at stemming the free fall of the cedi to protect businesses.

Vice President Dr. Mahamudu Bawumia during a Town Hall meeting to mark the Nana Akufo-Addo’s  one hundred days in office touted government’s efforts at stabilizing the cedi in the period.

But President of the Ghana Union of Traders Association, Barima Dr. George Ofori Ameyaw I, insists the cedi must appreciate further.

“The view of the business community is that whiles government is touting it has actually strengthened the cedi against the major currencies we as the business operators are not seeing those signs because we believe that if it has been pegged or it has gained its strength of about GHS2.0, GHS2.50, or GHS3.0 maximum then we could have seen the full impact of the stability of our currency but as it is it is still affecting the business community,” he argued.

“We believe that once it has gone down to that level it will benefit the businesses so we encourage them to do more to add to what they have down now.” he stressed.

In a sharp disagreement, an importer, Kweku Enin, told Citi Business News the impact of the stability is already affeceting businesses positively.

“Twenty-five years ago, $100,000 was Ghc490, 000 but $100,000 as at now is around GHS420,000, GHS430,000. So there is an overflow of about 60,000 to 70,000. That amount can be used to even pay the duty without losing anything so it means I can go on and import as many as I want  and still enjoy a good stable rate that will also grow my business. So for us in the business community it is good for us,” he argued.

He however appealed to government to work at getting the exchange rate to GHS3.0.

A real estate developer, Eddie Akotey  also appealed to government to work at further strengthening the cedi.

“It’s our wish that the cedi strengthens. Two and a half years ago we were around GHS2.2, GHS2.5 to a dollar. If we can get back to those days I think Ghanaians will be grateful. It will stabilize our businesses, it will make cost of living better than it is now.”

“So we urge government to work harder to ensure that the cedi appreciates further.” he added.

Meanwhile Economist Dr Godfred Bokpin is also hopeful the cedi will be stronger in the third quarter of this year.

“I expect the stability to continue even though I do not think that a significant appreciation of the cedi is sustainable. With the change in government and the goodwill that comes with Akufo-Addo’s government, we do also expect that donor partners will respond with appropriate measure and some level of inflows into the economy,” he said.

By: Jessica Ayorkor Aryee/

Citi Business News