Accra: Panelists on an International Labour Organisation (ILO) Tripartite Roundtable Discussion have stated that extreme exchange rate volatility can be risky and hurt businesses. The roundtable discussion focused on productivity, jobs, and growth in Ghana, using the National Productivity Statistics Report from the Ghana Statistical Service (GSS) as a reference.
According to Ghana News Agency, Dr. Kwabena Nyarko Otoo, Deputy Secretary General of the Ghana Trades Union Congress (TUC) and a panelist, highlighted that while Ghanaians may celebrate the appreciation of the cedi, the real challenge lies in the extreme volatility, which poses risks to certain sectors, particularly exports. He emphasized the need for a stable exchange rate to facilitate both short-term and long-term business planning.
Dr. Otoo further explained that from an economic perspective, stability in the exchange rate is crucial, as opposed to a rate that fluctuates sharply. He encouraged efforts to restore the cedi's value and mitigate its past depreciation.
Nana Poquah A. A. Adiamah, National Coordinator of the Association of Ghana Apparel Manufacturers (AGAM), expressed mixed reactions to the cedi's appreciation, noting potential losses for export-oriented companies. He emphasized the importance of monitoring currency trends to inform business strategies.
Mr. Kingsley Laar, an Economist and Senior Researcher at the Ghana Employers' Association, reiterated that business sustainability depends on predicting macroeconomic conditions, including exchange rates, to make informed decisions. He pointed out that exchange rate volatility complicates decision-making and impacts productivity, with central bank monetary policies sometimes increasing production costs and reducing business purchasing power.
