The Ghana Union of Traders Association (GUTA) has expressed deep concern over the rapid depreciation of the cedi, warning of far-reaching implications for the business community, particularly the trading sector.
In a statement signed by its President, Dr. Joseph Obeng, GUTA lamented that the cedi’s decline has created a “big mess” for businesses, exacerbated by rising freight charges from Asia and economic crisis. “The current state of affairs has far-reaching implications and has caused prices of goods and services to increase for the consuming public,” the statement read.
GUTA noted that 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 been affected, thereby reducing the turnover of businesses,” the association said.
As of Monday, May 14, 2024, the cedi was trading at GH₵14.80 to the US dollar at Forex Bureaus, while the British Pound and Euro were going for GH₵18.20 and GH₵15.80, respectively.
GUTA members are struggling to repay loans taken from banks to support their operations, the statement revealed. Rising freight charges, compounded by customs duties benchmarked in dollars at the port, are crippling trade and commerce, leading to untold hardship for businesses and consumers alike.
“The value of credit purchases increases, thereby making it very difficult for traders to repay the goods bought from their overseas suppliers, leading to higher indebtedness to businesses,” GUTA said.
The association urged the government to take urgent measures to address the situation, warning that inaction could lead to dire consequences. “GUTA hereby calls on the government to take urgent measures to save this alarming situation from getting out of hand.”
