Ghanaian Traders Alarmed by Cedi Depreciation

The Ghana Union of Traders Association (GUTA) is worried about the free fall of the cedi, particularly its adverse effects on the business community.

In a recent statement, GUTA stated compounding challenges, such as escalating freight charges from Asia which are amplifying the already onerous cost of conducting business.

The depreciating cedi has fueled inflationary pressures, leading to a sharp rise in prices for goods and services and straining the financial stability of businesses. This has resulted in reduced purchasing power for consumers, leading to a decline in business turnover and making loan repayments increasingly difficult.

Furthermore, the surge in freight charges, coupled with customs duties calculated in dollars at the port, has significantly hampered trade and commerce, causing hardships for businesses and consumers.

GUTA highlighted the growing unpredictability of business forecasts and the mounting difficulties in repaying credit purchases from overseas suppliers, resulting in indebtedness.

GUTA is urgently calling on the government to take prompt action to address the situation and prevent further deterioration. The association says it is willingt to collaborate with governmental bodies and other stakeholders to find solutions to the pressing issues.

Joseph Paddy, the Director of Communications for GUTA, elaborated on the dire consequences of the rapid depreciation of the cedi in an interview with RGGNEWS. He emphasized that the swift decline in the cedi’s value is plunging businesses into debt, with loan repayments becoming increasingly challenging due to reduced purchasing power resulting from import reliance.

Paddy urged both the central government and the central bank to investigate the causes of the depreciation and implement measures to stabilize and strengthen the cedi, to protect the interests of the Ghanaian business community.