The Ghana Union of Traders Association (GUTA) has urged the government to take urgent steps to boost the value of the cedi against major trading currencies, particularly the dollar.
In a statement dated May 14, GUTA expressed its willingness to collaborate with the government and other stakeholders to address this issue.
The association emphasized the detrimental impact of the cedi’s depreciation on the business community, especially the trading sector, describing the current situation as a crisis.
GUTA highlighted that the depreciating cedi, along with rising freight charges from Asia, is significantly increasing the cost of doing business. This situation has led to inflationary pressures, resulting in soaring prices of goods and making it increasingly difficult for businesses to remain profitable.
Moreover, the weakening cedi has reduced consumers’ purchasing power, leading to a decline in business turnover. The association noted that repaying bank loans has become exceedingly challenging under these economic conditions.
GUTA also raised concerns about the escalating freight charges and customs duties at the port, which are denominated in dollars. These factors, according to the union, are crippling trade and commerce, causing severe hardships for businesses and consumers.
Additionally, GUTA pointed out that the current economic conditions have heightened the uncertainty of businesses and the value of credit purchases. This has made it tough for traders to settle debts owed to overseas suppliers, resulting in increased business indebtedness.
