Poor cedi performance killing our businesses - GUTA

The Ghana Cedi continues to depreciate badly against the US dollar and other major currencies. One US dollar is now equivalent to GH7.04.

Cedis

The high exchange rate, the Ghana Union of Traders Association (GUTA) has indicated is killing their businesses.

They are thus appealing to the government to urgently put in place measures that will ensure and resolve the cedi depreciation problem.

It is very discomforting for businesses and most of us are losing our capitals. Already about 15 per cent of our capital has been depleted . If it continues we wouldn’t know what to do,” President of the GUTA, Dr. Joseph Obeng indicated in an interview with TV3.

In a related development, the Importers and Exporters Association of Ghana have also asked consumers in the country to prepare to pay more for goods and services due to the poor performance of the cedi on the international market.

According to the Executive Secretary of the association, Samson Awingobit, its members have choice but to pass on the high cost of importing goods to the consumer.

The business community is worried and consumers should also be worried because at the end of the day if an importer will have to go through and bring goods under this high cost rate of the dollar to Ghana cedis, 7.4 per dollar as we speak, it tells you that goods and services prices will have to go up.

That will not be well for the Ghanaian consuming public looking at the economic situation of the ordinary Ghanaian.

“I strongly believe that our call that the majority of our import is coming from China market and so there is no need for any Ghanaian business person to say he is travelling to China to buy goods, should be listened to. You put physical cash at the commercial bank exchanging for dollars, instead of the Bank of Ghana or the government making Chinese Yuan available.

“So far as this supply is coming from China there will be no need for dollars before you go to China. I strongly believe that that is the only way to go through. So make Chinese Yuan available in the market.”

Analysts have also predicted the cedi will most likely cross GH8 per 1 dollar soon.

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