In a recent interview highlighted by DW Africa, Mr. Asaki emphasized the dual-edged impact of the currency surge. While a stronger cedi helps importers by reducing the cost of bringing in goods, it presents a severe risk to the competitiveness of Ghanaian exports on the international market.
“When the cedi gains too much strength within a short time, Ghanaian products become expensive abroad. Exporters are paid in foreign currencies like the dollar or euro. When they convert it back to cedis, they receive less than before—this reduces their profit margin significantly,” Mr. Asaki explained.
The Export Sector’s Dilemma
The cedi’s rapid appreciation could adversely affect major export industries including cocoa, gold, shea butter, textiles, and agriculture-based products. This development puts exporters at a disadvantage, especially in a global market where pricing sensitivity determines competitive edge.
Exporters are also grappling with the uncertainty that comes with such swift currency changes. Contracts negotiated months in advance based on a projected exchange rate may now lead to financial losses. Some businesses have already reported reconsidering future shipment volumes.
Importers Breathe a Temporary Sigh of Relief
On the flip side, importers are experiencing short-term benefits. A stronger cedi means lower import costs, translating into reduced prices for fuel, raw materials, electronics, and food. However, Mr. Asaki cautions that over-reliance on imports and the suffering of the export base can destabilize the long-term trade balance.
“This situation might look good for importers, but it's not sustainable. A weakened export sector means less foreign currency inflow, which can eventually reverse the gains we’re seeing now,” he stated.
Call for Strategic Currency Management
Mr. Asaki is calling on the Bank of Ghana and the Ministry of Finance to monitor and manage the situation carefully. While currency stability is essential, he advocates for policies that support export growth, such as:
- Transparent forex trading frameworks
- Export tax rebates and incentives
- Infrastructure development at ports
- Targeted support for indigenous exporters
IEAG’s Position
As the leading voice of Ghana’s import and export stakeholders, the Importers and Exporters Association of Ghana urges the government to adopt a balanced approach to currency stabilization. Both importers and exporters are essential to Ghana’s economic resilience, and any policy that disproportionately favors one group risks long-term harm.
Watch the DW Africa segment here: YouTube Short – Why Ghana’s exporters are worried
