Exchange Rate Stability Driving Business Growth and Easing Cost Pressures – GUTA
Vice President of the Ghana Union of Traders Association (GUTA), Joseph Paddy, has underscored exchange rate stability as a critical enabler of business expansion, noting that recent developments have provided a notable boost to the trading community.
Speaking on Channel One TV quarterly economic outlook on Monday, April 27, he observed that the relative appreciation and steadiness of the exchange rate in recent months have offered some reprieve to businesses, especially importers who rely significantly on foreign currency.
He explained that the elevated cost of doing business in Ghana has long been a major challenge for traders, but the recent moderation in exchange rate movements is helping to ease operational pressures.
According to him, a more stable currency environment enhances business planning and supports more reliable financial forecasting.
“When the exchange rate declines, it supports business operations because the cost of doing business is very high,” he said, noting that recent trends have been positive.
Mr Paddy also indicated that some commercial banks are beginning to introduce more competitive lending conditions, including interest rates of about 6% for businesses, a move he described as particularly supportive for women involved in trading activities.
Recounting previous difficulties, he noted that traders often struggled to access foreign exchange, with rates experiencing sharp fluctuations within short timeframes.
However, he pointed out that the situation has improved considerably over the past year, with the cedi exhibiting relative stability for roughly 15 months.
Mr Paddy expressed confidence that the progress can be maintained, emphasising that sustained exchange rate stability will be essential for business growth and overall economic expansion.
