<<Print>>

One thing that comes to mind before venturing into any business is risk. Most businessmen are unable to identify, monitor, measure and manage the risk involved in what they do and this contributes to their loss. Concerning practically means to manage exchange rate risk, Union Savings and Loans invited a resource person from the financial stability of Bank of Ghana to engage stakeholders. The world, according to Dr. Settor Amediku, is full of decisions which can�t be met at all times. He reminded the gathering that in the business world, one must expect various forms of risk of which the foreign exchange risk is one. He explained that before any businessman could manage the risk involved in any business venture, he or she must identify, measure, monitor and manage the risk on regularly basis. In the world of business, Dr. Settor Amediku advises that businessmen and women must first look at the returns and consequences to attain before taking risks. He explains that businessmen �into export and import businesses are bound to face political risks if there is war in their country. He continues that "there is also a problem of not being able to convert one�s local currency into another for business transaction. Aside this, there is also commercial or illiquidity risk, interest rate risk and documentary risk (this is when you ask your bank to do a transfer and it doesn�t go through as expected).� Referring to a report by the US Trade Confidence Index, Dr. Amediku predicted that in the next six months, �exchange rate is going to be a major issue for international trade�. Head of Business Division at the Union Savings and Loans, Mr. Dominic Donkor, also raised certain salient points to help businessmen tackle the risk associated with exchange rate. He explained that with the way the Cedi is performing against the Dollar, he would encourage people to go into manufacturing rather than depending on foreign made goods. The importation of products from overseas, brings a lot of pressure on Ghana�s currency he added. He urged Ghanaians to use raw materials produced in the country to produce commodities needed on the market. Mr. Donkor revealed the willingness of Union Savings and Loans to work with business minded people who wanted to transform their dreams into reality. �Union believes that with materials and equipments, business firms can do well. And it is for this reason that we are encouraging people out there with ideas to put on paper and come to us for assistance. We are here to give you the capital you need to start producing in Ghana. We are doing this because we are aware it would contribute to the stabilization of the cedi�, he said.