Cedi’s depreciation has created a huge mess for businesses – GUTA laments

The Ghana Union Traders Association (GUTA) has expressed its frustration over the current state of the cedi.

The association in a statement signed by its president, Dr Joseph Obeng said the cedi’s depreciation has created a big mess for the business community especially, the trading sector.

It added that the economic crisis, coupled with the ever-rising freight charges from Asia is rendering the cost of doing business unbearable.

“The current state of affairs has far reaching implications and has caused prices of goods and services to increase for the consuming public.”

The association narrated that 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 been affected thereby reducing the turnover of businesses”.

On Monday May 14, 2024 the cedi was going for GH₵14.80 at Forex Bureaus while the British Pound was going for GH₵18.20.

The Euro on the other hand is going for GH₵15.80.

According to GUTA, its members are unable to repay loans taken from banks to support their operations.

It added that the rising freight charges, compounded by customs duties bench-marked in dollars at the port are crippling trade and commerce, leading to untold hardship for businesses and consumers alike.

“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 hereby calls on the government to take urgent measures to save this alarming situation from getting out of hand”, the statement said.

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Source: myjoyonline.com