Finance
Why Cedi Stability is More Beneficial to Businesses than Rapid Appreciation – Expert Shares Deep Insight
Although the recent appreciation of the Ghana cedi has been highly welcomed and celebrated by many, it is emerging that some businesses are taking a major hit, which is calling for a rethink of the country’s currency management strategy. Financial Advisory Partner and Africa Infrastructure Lead a...
The High Street Journal
published: Jul 18, 2025

Although the recent appreciation of the Ghana cedi has been highly welcomed and celebrated by many, it is emerging that some businesses are taking a major hit, which is calling for a rethink of the country’s currency management strategy.
Financial Advisory Partner and Africa Infrastructure Lead at Deloitte Ghana, Yaw Appiah Lartey, is urging a shift in focus from chasing currency strength to securing currency stability.
Speaking at the UPSA Law School–ABSA Quarterly Banking Roundtable, he emphasized that businesses benefit more from a stable cedi than from sudden spikes or drops in its value.
“For the central bank and for the government, what we should be targeting is stability, not rapid appreciation or rapid depreciation,” he said, adding that “It actually does not help in planning.”

The Real Cost of a Rising Cedi
Yaw Appiah Lartey illustrated the unintended consequences of the cedi’s sharp rise over recent months using a real-world example.
He narrated that just three months ago, a $10,000 invoice sent abroad would have earned a local business GHC150,000. Today, with the stronger cedi, that same invoice brings in just GHC102,000, a staggering loss of GHC48,000 on a single transaction.
“So, imagine I’m dealing in millions of dollars with external clients,” he said. “I’m going to take this hit and that’s the practical sense of it.”
He indicated that the loss isn’t due to any business error or default. It’s the by-product of a fast-moving exchange rate that punishes exporters and service providers who earn in foreign currency but spend in cedis.

The Need for Stability
The finance expert made a case that what businesses truly crave is not a ‘strong’ cedi per se, but a predictable one. When companies can forecast exchange rates over the short to medium term, say GHC12.5 to the dollar, they can confidently price goods, sign contracts, pay suppliers, and plan payrolls.
But when the cedi fluctuates wildly, whether up or down, it throws entire financial models into disarray, stifling investment and weakening long-term planning.
“For most businesses, they want stability. You want stability that will help you plan in the short to medium term. So, stability is what’s important, not an appreciation, but the stability of the currency,” he insisted.

Policy Implications
Lartey’s remarks come at a time when policymakers are navigating the delicate terrain of balancing inflation control, debt servicing, and growth. With inflation dropping to 13.7% and the cedi showing strength, there’s increasing pressure on the Bank of Ghana to cut its 28% policy rate.
As Ghana’s central bank continues to manage currency flows and inflation, Yaw Appiah Lartey wants the Bank of Ghana and the government to rather prioritize measures that will ensure that the cedi remains stable over time instead of chasing an appreciation.
This, he insists, is what will support trade, create jobs, and foster real investor confidence.
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