Deputy Secretary General of the TUC, Dr Kwabena Nyarko Otoo
The Ghana Trades Union Congress (TUC) has raised concerns about the potential dangers of extreme exchange rate fluctuations, warning that such volatility could harm businesses, particularly in the export sector.
Speaking at an International Labour Organisation (ILO) Tripartite Roundtable Discussion on productivity, jobs, and growth, Dr Kwabena Nyarko Otoo, Deputy Secretary General of the TUC, said that while the recent appreciation of the Ghanaian cedi is welcome, the business community is more concerned about stability.
“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,” Dr Otoo said.
He added, “However, the challenge is that extreme volatility can be very risky and hurtful for some sectors. What is happening now is hurting exports.”
The panel discussion, which used the Ghana Statistical Service’s National Productivity Statistics Report as a reference, highlighted how unpredictable exchange rate movements complicate planning and decision-making for businesses.
Dr Otoo called for a stable exchange rate environment, warning that rapid fluctuations, whether appreciation or depreciation, are harmful to economic planning.
Fellow panelist Nana Poquah A. A. Adiamah, National Coordinator of the Association of Ghana Apparel Manufacturers (AGAM), shared similar concerns.
She noted that while the cedi’s appreciation might seem like good news, it poses challenges for export-oriented companies.
“We are watching how the currency will go and making business strategies based on that,” she said, highlighting the uncertainty businesses currently face.
Kingsley Laar, an economist and senior researcher at the Ghana Employers’ Association, also echoed the call for stability, pointing out that predictability is key to productivity and business sustainability.
“Volatility in the exchange rate makes it difficult to make decisions,” he said.
“Sometimes, monetary policies introduced to manage the macroeconomy end up increasing production costs and reducing the purchasing power of businesses.”
The panel called for a coordinated policy approach to ensure exchange rate stability, which they say is critical for job creation, productivity, and long-term economic growth.
ID/EB
Watch the latest edition of BizTech below:
Click here to follow the GhanaWeb Business WhatsApp channel