The Ghana Union of Traders Association (GUTA) has issued a plea to the government, urging immediate action to bolster the cedi’s value 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 the currency depreciation crisis, which is significantly impacting the business community, especially the trading sector.
Describing the situation as dire, GUTA emphasized that the weakening cedi, alongside rising freight charges from Asia, is exacerbating the cost of doing business, rendering it unsustainable for many enterprises.
The union highlighted the adverse effects of cedi depreciation, including inflationary pressures that are driving up the prices of goods and impeding business viability. Additionally, decreased purchasing power among consumers has contributed to a decline in business turnover.
GUTA underscored the challenges faced by businesses in repaying bank loans amidst the economic downturn. Moreover, it raised concerns about the crippling impact of rising freight charges and customs duties, both denominated in dollars, at the port, further exacerbating hardships for businesses and consumers.
Furthermore, GUTA pointed out the increased unpredictability in business operations and the soaring value of credit purchases, making it arduous for traders to settle debts owed to overseas suppliers and leading to higher levels of business indebtedness.
Below is the full statement from GUTA:
Source: www.ghanaweb.live