The Ghana Union of Traders’ Associations (GUTA) has expressed strong commendation for the Bank of Ghana (BoG), lauding the Central Bank’s recent achievements in stabilizing the Ghanaian cedi.
In a statement signed by GUTA President, Dr. Joseph Obeng, the traders’ association praised the BoG for implementing prudent monetary policies that have not only led to a stronger cedi but also diminished the perception of the U.S. dollar as a superior store of value in Ghana.
For many years, the U.S. dollar has held a dominant position in Ghana’s informal and formal economies as a more reliable store of value than the cedi. Traders and importers have historically turned to the dollar to hedge against local currency depreciation, fueling speculative demand and weakening the cedi further. However, GUTA now says this narrative is changing, thanks to the BoG’s consistent efforts to manage the foreign exchange (forex) market with transparency and discipline.
According to GUTA, the improved stability of the cedi has helped shift market sentiment, leading to a gradual erosion of the dollar’s dominance in business transactions and personal savings. “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,” the association stated.
BoG’s Prudent Monetary Interventions
GUTA attributed this welcome development to a series of strategic interventions by the Bank of Ghana. These include the tightening of monetary policy to combat inflation, enhanced transparency in foreign exchange auctions, and improved coordination with the Ministry of Finance on fiscal consolidation measures. Such prudent moves have helped stabilize the forex market, build investor confidence, and curb excessive volatility in exchange rates.
The Central Bank’s active management of the forex market has also ensured a more efficient allocation of foreign exchange, enabling businesses to plan and price their goods and services with greater predictability. “We wish to highly commend the Governor and his team for efficiently managing the forex market to this extent,” Dr. Obeng stated.
Currency stability is of critical importance to the trading community, especially importers who are directly affected by fluctuations in the exchange rate. The appreciation of the cedi against major international currencies, particularly the U.S. dollar, has provided much-needed relief to businesses that rely on imported goods. GUTA noted that the recent strengthening of the local currency has helped restore pricing stability, reduce operational costs, and create a more predictable business environment.
In previous years, erratic depreciation of the cedi threatened to erode traders’ profit margins and fuel inflation. However, with the current trajectory, GUTA believes businesses are beginning to regain their competitive edge. “These prudent measures, if sustained, would lead to full economic recovery and make businesses competitive,” the statement emphasized.
Government’s Role in Fiscal Discipline
In addition to BoG’s interventions, GUTA also acknowledged the role of the government in promoting fiscal discipline. Efforts to reduce the fiscal deficit, streamline public spending, and mobilize domestic revenue have contributed to improving macroeconomic stability. Together, these fiscal and monetary strategies have created a conducive environment for exchange rate stability and private sector growth.
The synergy between the Central Bank and the government has been instrumental in managing external pressures and restoring confidence in the cedi. GUTA urged both institutions to continue working together to maintain the gains achieved so far.
While commending the current success, GUTA called for sustained implementation of the BoG’s monetary policies and the government’s fiscal measures. The association emphasized that only consistent policy execution would lead to long-term economic recovery and continued currency resilience.
The positive shift in Ghana’s forex market—driven by the BoG’s strategic leadership and government support—has begun to alter long-held perceptions about the cedi’s reliability. For the first time in many years, the local currency is not only gaining ground but also earning the trust of those who depend on it the most: the business community. As GUTA’s statement reflects, the tide may finally be turning in favor of the cedi, signaling a confident economic future for Ghana.
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