The Ghana Union of Traders Association (GUTA) has expressed concern over the persistent depreciation of the Ghana cedi against major trading currencies.
A statement issued by the association described the situation as "getting out of hand" adding that the hike in the monetary policy rate has also resulted in an increase in lending rates for businesses.
GUTA pointed out that as a result of the depreciation, “businesses have reached a situation where their survival is seriously threatened if no immediate action is taken by the Government to find a solution.”
“It could be recalled that since December 2021 when the dollar was GH¢6.4 cedis, our working capitals have been depleted by 40%. Now that, the dollar has reached about GH¢9.00 cedis, our worst fear is that we are now going to make Christmas orders from our suppliers, which may aggravate the situation,” GUTA said.
The Association also bemoaned the rate at which foreigners are being allowed in Ghana's retail trade space and other sectors of the economy.
“Allowing foreigners into the retail trade and wholesale sectors of the economy will not help this country, but rather defeat the action plan set for the implementation of 1D 1F, AfCFTA and the general industrialization in Ghana.”
“We also want to remind the Government that the big-time institutional importers, especially, those who serve as conduits for dumping goods mainly from China are the culprits,” GUTA noted.
In the wake of their concerns, GUTA has called on government to “as a matter of urgency, reconvene the Foreign Exchange Committee that was set up a few years ago by the Finance Ministry which involved all relevant stakeholders, to help find an immediate solution.”
Further touching on the cedi’s depreciation, GUTA urged for pragmatic measures to be taken to curtail the situation.
“If immediate remedial measures are not taken to control this alarming situation, we may be using One Million Ghana cedis to buy only One Hundred Thousand US dollars when the dollar reaches GH¢10.00 Ghana cedis.”
“At this point in time, if nothing is done, speculations would be rife and serious panic will set in for people to invest in forex as a matter of security for their hard-earned working capital, thereby making control of such a situation difficult for the government,” the Association added.
Read the full statement by GUTA below:
MA/FNOQ
President of GUTA, Dr. Joseph Obeng