The Ghana Union of Traders Association (GUTA) has raised an alarm over plummeting cedi value and its effect on businesses.
In a statement, GUTA stated that "the depreciation of the cedi against other major trading currencies is getting out of hand, and the increase in the monetary policy rate is also leading to high lending rate in the country."
According to GUTA, 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 6.4 cedis, our working capitals have been depleted by 40%. Now that, the dollar has reached about 9.00 cedis, our worst fear is that we are now going to make Christmas orders from our suppliers, which may aggravate the situation."
It added that "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.
GUTA, therefore, called on the 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."
According to GUTA, "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 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," they added.
Latest Stories
-
Livestream: Newsfile discusses Cecilia Dapaah’s case, vote-buying allegations in Ejisu
7 mins -
NACOC embarks on a search at Nsawam Prison
28 mins -
Ban on noise-making commences May 6
41 mins -
Foden wins Football Writers’ Association Footballer of the Year award
56 mins -
FDA discovers expired food items at Zuarungu SHS storeroom
2 hours -
Bahamas World Relays: Ghana paired with world and Olympic champions in Heat 1
9 hours -
Bahamas 2024 Relays: Star-studded cast ready to put on pre-Paris show
10 hours -
Bahamas Relays preview: clash of global title-winning teams in men’s 4x100m
10 hours -
Arsenal keeper Raya wins Premier League Golden Glove
10 hours -
Iñaki Williams scores twice in Athletic Bilbao’s win over Getafe
10 hours -
Argument with Salah ‘completely resolved’ – Klopp
11 hours -
Reus to leave Dortmund at the end of the season
11 hours -
Uefa confirms 26-man squads for Euro 2024
11 hours -
Teacher Unions press home demands for the new allowances
11 hours -
Media’s failure to hold government accountable for ‘galamsey’ alarming – Mahama
11 hours