Currency Stability Industry players uncertain about impact of cedi appreciation

Importers have expressed mixed reactions about the stability of the cedi

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Some Ghanaian importers have expressed mixed reactions on the cedi’s stability on the expenditure of their operations.

Despite the positive response from some importers concerning the cedi’s stability, some say the government has to put in more effort for wholesome effect to be visible.

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.

READ ALSO: Cedi stability not artificial: Finance minister tells critics

During a Town Hall meeting to mark the one hundred days of the president’s term in office, Vice President, Dr. Mahamudu Bawumia lauded the efforts of the government stabilizing the cedi.

Dr. Mahamudu Bawumia play Mahamudu Bawumia

 

However, Dr. George Ofori Ameyaw, President of the Ghana Union of Traders Association until further appreciation of the cedi, the government’s self-praise is not justified.

“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.

READ ALSO: We have arrested the cedi in 100 days and given keys to IGP

“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.

However,  Kweku Enin who is importer said in contrast to Mr. Ameyaw’s comments on Citi Business News that the cedi’s stability is already having a positive impact of on businesses.

“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.

READ ALSO: Central Bank calls for reforms in currency management

Mr. Ennin however urged the government to work at getting the exchange rate to GHS3.0.

Real estate developer, Eddie Akotey has 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.

Head of Finance at the University of Ghana Business School, Dr. Godfred Bokpin play Godfred Bokpin

 

“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.