The Ghana Union of Traders Association (GUTA) has called on the government to take urgent measures to ensure the cedi appreciates against major trading currencies, especially the dollar.
“GUTA expresses its readiness to collaborate with the government and other stakeholders on this issue,” it added in a statement dated May 14.
It said this because the depreciation of the cedi was wreaking havoc on the business community, particularly the trading sector.
The union described the current situation as a crisis. It pointed out that the depreciating cedi, coupled with escalating freight charges from Asia, is making the cost of doing business unbearable.
GUTA highlighted that the depreciation of the cedi has led to inflationary pressures, pushing the cost of goods sky-high and making it increasingly challenging for businesses to remain viable.
It said the situation has also affected the purchasing power of consumers, leading to a decrease in business turnover.
GUTA further noted that the repayment of bank loans has become extremely difficult due to these economic conditions.
The union also drew attention to the rising freight charges and customs duties benchmarked in dollars at the port, stating that these factors are crippling trade and commerce, leading to severe hardships for businesses and consumers alike.
GUTA also pointed out that the current economic conditions have increased the unpredictability of businesses and the value of credit purchases, making it difficult for traders to repay goods bought from overseas suppliers and leading to higher business indebtedness.
