“If you don’t have anything to do with that forex, liquidate it,” Charles Kusi Appiah, Head of the Business and Economic Bureau of the Ghana Union of Traders’ Associations (GUTA), has warned individuals and businesses holding foreign exchange unnecessarily.
He gave the advice on Joy News’ PM Express Business Edition on Thursday, May 8, where he pointed to recent market dynamics showing the cedi gaining strength against major currencies.
According to him, clinging to dollars or other forex holdings when not required for immediate trade or transactions is not just unwise—it is economically damaging.
“Someone called me today asking, ‘What am I supposed to do? I’m holding forex. Are we going to see a downtrend of forex?’ Of course, yes,” he said.
“The trajectory shows that the cedi is day in and day out, gaining strength. So it doesn’t make economic sense for you to hold on to something you are losing every day.”
He explained that for years, the dollar was seen as a safe haven for local investors and traders who had lost confidence in the cedi.
“People put their trust in forex when the cedi, the local currency, is not doing well and the forex becomes the store of value,” he said.
“Everybody wants to reference their investments. And when you are in an environment where predictability becomes a challenge, you always want to see what you can do to protect your gains.”
But that, he noted, has changed.
“Now, forex demand has reduced when it comes to international trade, and the cedi is appreciating. Why do you then hold on to forex when you are losing value?” he asked.
“With the introduction of the GoldBod, where most international transactions use gold, the demand for forex has reduced. Therefore, there’s no need for one to hold forex for any transaction,” he explained.
He confirmed that many GUTA members have already begun reducing their excessive demand for dollars.
“Yes, the opposite has occurred. Now, the confidence is that the local currency is strong enough to be the store of value, so I don’t need to hold forex. That is what accounts for the things that we see now,” he said.
Kusi Appiah believes this shift is one reason the cedi is stabilising.
“When the dynamics have changed and you can see that there’s no need to hold on to it, the forex demand reduces. And that is accounting for the downward trend of forex in our market.”
He urged traders to explore alternatives.
“There are other investment options—probably the gold coin—that you can invest in so that you don’t lose totally.”
In a final warning to speculators, he said: “When forex outperforms cedis, our working capital gets depleted. But if the cedi is now stable and strong, then it’s time to rethink. Liquidate what you don’t need.”
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