Why John Awuah Says a “Steady Cedi” Beats a Strong On
John Awuah isn’t here for the hype. While many are celebrating the recent increase in the Ghanaian cedi’s value, the CEO of the Ghana Association of Banks is asking everyone, especially those at the Bank of Ghana, to take a breath. On May 29, 2025, he made it clear: it’s not about whether the cedi is gaining or losing. It’s about whether businesses can count on it to hold its ground tomorrow, next month, and six months from now.
"Businesses aren’t just guessing games,” Awuah explained. “If the cedi’s all over the place, up today, down tomorrow, how are companies supposed to plan their budgets, pay suppliers, or even sign long-term contracts?” That kind of instability, he said, throws a wrench into everything from banking to forecasting revenues.
It’s Not Trade, It’s Speculation
Awuah pulled back the curtain on what’s really fueling the cedi’s rollercoaster ride: speculative trading. Not trade deficits. No fundamental problems with Ghana’s economy. Just traders betting on the currency like it’s a roulette wheel.
He estimated that as much as 20–30% of the recent depreciation wasn’t grounded in real economic data, but rather driven by fear, rumours, and short-term profit plays. And that’s a problem. “Speculative moves like these don’t just vanish,” he warned. “They ripple through the economy and make it harder for people to make smart, long-term decisions.”
In other words, a stronger cedi isn’t necessarily a better one, especially if that strength is built on shaky ground.
A Case for Calm, Predictable Currency Policy
So what’s the fix? Awuah’s not calling for price fixing or artificial controls. Instead, he’s asking for what he calls prudent currency management, a steady hand from the central bank. Something as simple as a consistent exchange rate range or clear guidance from the Bank of Ghana could go a long way in anchoring business expectations.
“If businesses knew the cedi would hover within a certain band over the next year, they’d be in a much better place to plan,” he said. That kind of predictability, he added, isn’t market manipulation. It’s just smart economic policy.
More Confidence in the Cedi? That’s a Good Sign
To be fair, Awuah does see one silver lining: the cedi’s recent strength is making people a bit more comfortable investing in cedi-based assets. That’s a welcome change. As more investors put their faith (and their cash) in the local currency, the pressure on foreign exchange markets may ease up too.
But he’s not popping champagne just yet.
“I’m not saying we’re heading back to single-digit exchange rates anytime soon,” he said. “This isn’t about chasing a number, it’s about consistency. Businesses can’t operate on vibes.”
Why This Matters for Everyone, Not Just Economists
Awuah’s bigger point is simple: exchange rate stability isn’t just some abstract economic goal. It affects real people, importers trying to price goods, small businesses working out loan terms, farmers buying machinery, and tech startups pitching to foreign investors.
“When the cedi’s stable, people don’t have to spend their days firefighting,” he said. “They can focus on building. On growing.”
Unpredictable currency swings don’t just hurt big corporations; they shake the entire foundation of business confidence. And once that cracks, it’s hard to convince anyone, local or foreign, to take risks and invest in Ghana’s future.
A Gentle Nudge to the Bank of Ghana and the Government
At the end of the day, Awuah’s message to policymakers is pretty clear: talk to each other, make a plan, and stick to it. The more transparent and data-driven the communication, the better the market responds. Investors don’t need guarantees; they just need to know the rules won’t suddenly change.
As Ghana continues to find its footing in a tough global economy, Awuah’s reminder hits home: real progress doesn’t come from flashy exchange rate victories. It comes from trust. And trust is built on stability.
