Adolph Kpegah, Executive Director of Strategy and Operations at Absa Bank Ghana LTD, emphasized the crucial role of consistent policies and macroeconomic stability in rebuilding public trust in the cedi and reducing the preference for foreign currencies.
Speaking at the 11th Absa-UPSA Quarterly Banking Roundtable, Mr. Kpegah pointed out that maintaining stability and policy consistency is essential to restore confidence in the cedi and lower reliance on the US dollar. He explained that the practice of pricing goods and services in US dollars stems from past fluctuations in the cedi’s value.
“The preference for foreign exchange over the cedi is partly due to the cedi’s historic inability to retain its value. When a currency depreciates, people naturally seek alternatives that better preserve their wealth,” he said. He stressed that only a prolonged period of stability can build lasting trust in the cedi or cedi-linked financial instruments as reliable stores of value.
Mr. Kpegah noted early signs of optimism, such as some real estate businesses reverting to cedi pricing following the currency’s appreciation in the second quarter of 2025. However, he cautioned that such changes in behavior require sustained stability.
He advocated for a comprehensive policy framework that avoids sudden monetary and fiscal policy changes, strictly enforces foreign exchange regulations to stop illegal pricing, maintains prudent fiscal management, and prepares to handle external shocks. He praised the coordinated efforts of the Bank of Ghana and the Ministry of Finance, while recognizing the impact of global factors.
Mr. Kpegah said restoring confidence in the cedi is a long and complex process that demands disciplined policy, credible institutions, and purposeful efforts to change public perception. He also highlighted the importance of ongoing discussions like the Absa-UPSA Quarterly Banking Roundtable in promoting accountability and innovation as Ghana advances toward financial independence. He commended the organizers for involving students in these discussions, describing their inclusion as essential for developing future leaders.
