Exchange rate stability improving business planning and growth prospects – GUTA

Vice President of the Ghana Union of Traders Association (GUTA), Joseph Paddy, says the recent stability of the Ghana cedi is creating a more predictable and supportive environment for businesses to plan and expand.

Speaking on JoyBusiness Roundtable on the theme “Mahama at 16 Months: Do Economic Narratives Match Real-Sector Outcomes?”, Mr. Paddy emphasised that market predictability is essential for business sustainability.

He noted that the relative stability of the cedi against major foreign currencies has improved confidence within the business community, making it easier for firms to forecast costs and revenues.

“The economic conditions we are experiencing now are healthy for businesses. It allows for projections and provides predictability, unlike before when it was difficult to plan,” he said.

Mr. Paddy explained that in the past, sharp and frequent fluctuations in the exchange rate made it challenging for businesses to accurately estimate expenses and earnings.

“As a business, if you are unable to make projections, you risk going out of business,” he stressed.

He added that the current stability has reduced uncertainty, contrasting it with previous periods when exchange rates could shift significantly within hours.

“Previously, the dollar could change within a few hours after you wake up. Now, this level of stability allows us to plan better,” he noted.

According to him, the improved exchange rate conditions are also enabling businesses to retain savings and reinvest them into their operations.

He explained that under the current environment, firms are able to make cost savings that can be channelled into growth and expansion.

“We are reinvesting those gains back into our businesses. So far, the business community is seeing signs of stability,” he added.

Mr. Paddy maintained that while other factors affect business performance, exchange rate stability remains a key positive indicator for the private sector.