The Ghana Trades Union Congress (TUC) has issued a cautionary statement on the risks associated with extreme exchange rate volatility, warning that the unpredictability of the Ghanaian cedi despite its recent appreciation could undermine the very sectors it seeks to support, particularly exports and long-term business planning.
Speaking at an International Labour Organisation (ILO) Tripartite Roundtable on productivity, jobs, and growth, Dr. Kwabena Nyarko Otoo, Deputy Secretary General of the TUC, welcomed the recent gains in the cedi’s value but stressed that what businesses need most is consistency.
“Given where we have come from, we should be allowed to pat ourselves on the back and be encouraged to do more to make sure that the cedi regains some of its lost value, however, the challenge is that extreme volatility can be very risky and hurtful for some sectors. What is happening now is hurting exports.” Dr. Otoo said.
The roundtable used the Ghana Statistical Service’s National Productivity Statistics Report as a backdrop to explore the relationship between macroeconomic stability and productive job growth. Stakeholders at the event unanimously called for stronger policy coordination to anchor the exchange rate and provide a more predictable business environment.
Nana Poquah A. A. Adiamah, National Coordinator of the Association of Ghana Apparel Manufacturers (AGAM), echoed these concerns, emphasizing how currency swings disrupt planning in export-oriented industries.
“We are watching how the currency will go and making business strategies based on that,” she noted, underscoring the operational uncertainty currently facing firms across the country.
Economist and senior researcher at the Ghana Employers’ Association, Kingsley Laar, reinforced the call for stability, stating, “Volatility in the exchange rate makes it difficult to make decisions. Sometimes, monetary policies introduced to manage the macroeconomy end up increasing production costs and reducing the purchasing power of businesses.”
While recent appreciation of the cedi may offer temporary relief to importers, panelists argued that it can distort market dynamics if not managed carefully, with exporters facing declining revenues due to reduced foreign exchange receipts.
The TUC and other stakeholders are urging policymakers to focus on long-term exchange rate stability through disciplined fiscal policy, coordinated monetary strategies, and investment in productive sectors that generate consistent foreign exchange inflows.
In the broader context of Ghana’s economic recovery, the message is clear: while the strength of the cedi is important, its stability is essential for sustainable growth, business resilience, and job creation.
