The Ghana Union of Traders Associations (GUTA) has urged government to take urgent steps to address the continuous depreciation of the cedi against major foreign currencies.
According to GUTA, the current situation is affecting the capital base of its members.
“GUTA expresses deep frustration over the current depreciation of the cedi, which is creating a big mess for the business community, especially, the trading sector. This seeming crisis coupled with the ever-rising freight charges from Asia are rendering the cost of doing business unbearable,” GUTA President, Dr. Joseph Obeng wrote in a press release dated May 14, 2024.
“The current state of affairs has far-reaching implications and has caused prices of goods and services to increase for the consuming public,” Dr Obeng added.
He mentioned the following as the effects of the depreciation of the cedi on Ghanaian businesses:
• The inflationary pressures resulting from the depreciating cedi have pushed the cost of goods through the roof, making it increasingly difficult for businesses to stay afloat.
• The purchasing power of the consuming public has also been affected, thereby reducing the turnover of businesses.
• Repayment of loans to the bank has then become extremely difficult.
• The rising freight charges, compounded by customs duties benchmarked in dollars at the port, are crippling trade and commerce, leading to untold hardships for businesses and consumers alike.
• It has increased unpredictability or forecast of businesses.
• The value of credit purchase increases, thereby, making it very difficult for traders to repay the goods bought from their overseas suppliers, leading to higher indebtedness to businesses.
The Assocation therefore expressed its readiness to “collaborate with the government and other stakeholders on this issue.”
