GUTA: Fiscal discipline, BoG action key to cedi stability

Dr. Joseph Obeng, President of the Ghana Union of Traders’ Association (GUTA), has called on the government to maintain fiscal discipline. He emphasized the need for prudent monetary policies to support the recent appreciation of the Ghanaian cedi. Currently, the cedi is trading at GHS13.00 to the US dollar.

During an interview on the Citi Breakfast Show, Dr. Obeng highlighted that a stable exchange rate is crucial. It fosters business confidence and supports long-term economic growth. He stated that businesses thrive when stability is maintained.

Dr. Obeng explained that sustaining the cedi's strength depends on several factors. These include government commitment, fiscal responsibility, and effective regulatory frameworks. The Bank of Ghana also plays a key role in this process.

He warned against economic narratives that could weaken the cedi while promoting exports. Dr. Obeng cautioned policymakers about arguments favoring currency devaluation for export competitiveness. He believes such theories can confuse decision-makers and harm the cedi's strength.

Highlighting industrialization efforts, he stressed that Ghanaian products must remain competitively priced. Overpricing could hinder progress in local and global markets. Dr. Obeng urged the government to recognize how forex reductions can support its 24-hour economy agenda.

The recent appreciation of the cedi has brought cautious optimism among stakeholders. Many are urging consistent policies to prevent any reversal of progress in this area.