Africa-Press – Ghana. The Ghana Federation of Traders has given the government a two-week ultimatum to bring the cedi to GHC10.00 or face demonstrations from the business associations.
Currently, the cedi is selling between GHC15.17 and GHC15.65 at leading Forex Bureaus.
The federation, in a statement dated Sunday, May 26, underscored that the current trajectory of the cedi depreciation is posing “a significant threat” to their businesses.
Additionally, the federation maintained that depreciation of the local currency is synonymous with depletion of capital, stressing that business owners have lost about 20 percent of their capital from year to date.
“Today, a collective voice of traders groups from across the nation has come together to urgently appeal to the government for immediate action to reduce the exchange rate from Ghc 15.50 to Ghc 10.00.
“As small and medium-sized businesses navigate through unprecedented economic challenges, a lower exchange rate is imperative to foster growth, ensure competitiveness, and safeguard the livelihoods of countless businesses and their employees.
“The current exchange rate trajectory poses a significant threat to the sustainability and viability of our businesses. Fluctuations in currency values have greatly inflated the cost of imports, pushing operational expenses to unsustainable levels.
“As a result, many businesses are facing mounting financial pressure, endangering their ability to stay afloat and retain their workforce,” portions of the statement read.
Moreover, the Federation of Traders stressed that the current exchange rate under the Akufo-Addo-Bawumia administration is “distasteful to businesses” because the NPP promised to bring the rate down in the run-up to the 2016 election.
“Looking at comparative performance of the cedi against the dollar rate under successive government, in 2008, the cedi was Ghc 1.057 to the dollar. 2012 recorded Ghc 1.972 to the dollar, whereas 2016 recorded Ghc 3.945 to the dollar. The rate has skyrocketed from Ghc 3.945. to Ghc 15.17 under this current government, and it is distasteful to all business owners, consumers and generally impacts on livelihood.”
“We therefore call on all business owners, associations, trade unions and all Ghanaian who have been negatively affected by the depreciation of the cedi to join the Ghana Federation of Traders to stage a strong demonstration against the government if drastic measures are not put in place in the next two weeks,” the statement concluded.
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