GUTA urges government to critically tackle persistent depreciation of the cedi

The Ghana Union of Traders Associations (GUTA) has expressed concern over the persistent depreciation of the cedi against major trading currencies.

According to the Union, the situation is having a dire effect on the capital of its members who are already reeling from the impacts of the economic challenges in the country.

In a statement sighted by GhanaWeb Business, President of GUTA, Dr. Joseph Obeng, called on the government to urgently take steps towards addressing the cedi's depreciation.

“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,” Dr Joseph Obeng wrote.

He added that, “The current state of affairs has far-reaching implications and has caused prices of goods and services to increase for the consuming public,”

The GUTA president also outlined some major effects of the cedi’s depreciation especially on Ghanaians businesses as follows:

• 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.

GUTA added that it remains keen to “collaborate with the government and other stakeholders on this issue.”

MA