Adolph Kpegah, Executive Director, Strategy and Operations at Absa Bank Ghana LTD, has highlighted the importance of policy consistency and macroeconomic stability in restoring public confidence in the cedi and in discouraging the preference for hard foreign currency.
Speaking at the recent 11th Absa-UPSA Quarterly Banking Roundtable, Mr Kpegah highlighted that sustained macroeconomic stability and policy consistency are critical to restoring trust in the cedi and reducing reliance on foreign currency.
He explained that the tendency for some businesses to price goods and services in US dollars reflects past volatility in the cedi’s value. “The inclination of some sections of the public to prefer FX to the cedi has partly been influenced by the cedi’s inability to retain value in the past.
When a currency fails to hold value, individuals will naturally seek alternatives that better preserve their economic interest. Hence, a sustained period of stability is necessary for confidence in and preference for the cedi or cedi-backed instruments as a store of value,” he said.
He observed that while there are early signs of growing optimism, such as recent reports of businesses in the real estate sector switching back to cedi pricing following the currency’s appreciation in the second quarter of 2025, lasting behavioural change will only follow a sustained period of stability.
Mr Kpegah called for a comprehensive policy approach, including avoiding abrupt shifts in monetary and fiscal policy, enforcing foreign exchange regulations to curb illegal pricing practices, maintaining prudent fiscal management, and planning ahead to manage external shocks.
He commended the coordinated policy efforts by the Bank of Ghana and Ministry of Finance, while acknowledging the influence of broader external developments.
He concluded that the path to restoring confidence in the cedi is neither short nor simple. “It demands sustained policy discipline, institutional credibility, and a deliberate effort to reshape public sentiment,” he stated. As Ghana continues its journey toward financial sovereignty, Mr
Kpegah noted, ongoing dialogue such as that provided by the Absa-UPSA Quarterly Banking Roundtable is essential for fostering accountability and innovation.
