- GUTA Says Stable Cedi Is Restoring Predictability for Businesses
The Ghana Union of Traders Association says the recent stability of the cedi is creating a healthier environment for businesses, giving traders and firms greater predictability in pricing, planning and investment decisions.
Speaking during the JoyBusiness Roundtable discussion on the theme, “Mahama at 16 Months: Do Economic Narratives Match Real-Sector Outcomes?”, GUTA Vice-President Joseph Paddy said the current exchange rate environment has eased one of the most disruptive pressures facing businesses in recent years.
“The economic condition we find ourselves in now is healthy for businesses. It helps you to do projection, it also gives you predictability. Unlike before, where it was difficult to project,” Mr Paddy said,
His comments add to a broader debate over Ghana’s recovery story and whether recent improvements in macroeconomic indicators are beginning to show up in the real sector.
For businesses, exchange rate stability is particularly important because it affects import costs, pricing decisions, working capital planning and consumer prices. During periods of sharp cedi depreciation, traders often struggle to price goods accurately, as replacement costs can change rapidly between the time goods are ordered, cleared and sold.
Mr Paddy said the previous environment of frequent currency movements made planning extremely difficult for businesses. “As a business, if you’re not able to do projection, you’ll be out of business,” he said.
He noted that traders previously faced a situation where exchange rates could shift within hours, disrupting business planning and forcing firms to adjust prices frequently. “Every morning you wake up, the dollar changes within a few hours. But now, this stability has given us a way to do projection,” he added.
The GUTA Vice-President said the more stable exchange rate environment is also allowing businesses to retain some gains and reinvest them into operations, rather than losing margins to currency volatility.
“We are plowing back those gains into our businesses again… So far, so good. The business community has seen some signal of stability,” he said.
The remarks suggest that while households may still be waiting for stronger relief in the form of lower prices and improved purchasing power, sections of the business community are beginning to acknowledge the benefits of macroeconomic stabilisation.
For traders, the exchange rate remains one of the most important indicators of business confidence. A stable cedi improves the ability to project import costs, negotiate supplier contracts, manage inventories and avoid sudden losses from currency swings.
It also supports price discipline in the market. When exchange rates are volatile, businesses often price defensively to protect themselves against future depreciation. Stability, by contrast, can reduce speculative pricing and create room for more measured price adjustments.
However, Mr Paddy maintained that exchange rate stability is only one part of the business environment. Other factors, including access to credit, taxation, utility costs, consumer demand and logistics expenses, continue to influence business performance.
His comments nevertheless reinforce the central message emerging from the JoyBusiness Roundtable: Ghana’s macroeconomic recovery is increasingly visible, but its real-sector transmission remains uneven.
For now, traders appear to have welcomed the stability. After years in which currency volatility made planning difficult, the cedi’s relative calm is giving businesses something they have long lacked: the ability to look ahead with some confidence.
