The general public and businesses concerned about the long-term stability of the cedi can now heave a sigh of relief as the government has given the assurance that it is committed to working to ensure that the gains made stick and stay.
Deputy Minister for Finance, Thomas Nyarko Ampem, says the government’s major objective now is to make sure the cedi’s appreciation does not become just a fleeting moment that will be carried away by the wind.
The minister reveals there is a clear, deliberate, and long-term strategy to ensure macroeconomic stability, predictability, and investor confidence.
Already, the Ghana National Chamber of Commerce and Industry (GNCCI) has expressed fears about the long-term sustainability of the cedi’s gains, hence apprehensive about reducing prices of their goods.
Many businesses share similar sentiments, fearing the development will just be a nine-day wonder, explaining why the gains are not reflected in prices on the market.
Thomas Ampem Nyarko says the government recognizes these concerns and is taking concrete steps to lock in gains and build resilience. Among a number of strategies, he mentioned is the commitment to build more reserves to anchor the cedi while gold prices on the international market are still favourable.
“What is important is the predictability and stability of the cedi to allow for planning and for businesses to work well, and that is what we are working towards,” he indicated.
He continued that, “We know the price of gold today is high, over $3,000 per ounce, and we are also exporting enough gold. We are making hay while the sun shines. We’ll continue in this trajectory to build more reserves, build more buffers, and that will help.”
Already, some financial analysts, such as Dr. Richmond Atuahene, have cautioned the government to avoid complacency and rather focus on long-term sustainability. He has proposed some strategies for the government to implement to anchor the cedi.
According to Dr. Atuahene, there are external threats to the gains, hence the need for structural reforms that will shield the gains made so far.
This assurance from the Deputy Finance Minister underscores a critical shift in government policy from reactive firefighting to proactive financial planning. With Ghana having experienced cycles of rapid depreciation in recent years, often triggered by high import demands, external debt repayments, and speculative behavior, ensuring the cedi’s predictability is very crucial for business and economic progress
