Benjamin Yeboah, the Director of Welfare for the Ghana Union of Traders Association (GUTA), has urged the government to take action to stabilize the exchange rate between the dollar and the Ghana Cedi at various ports across the country. He emphasized that this move is necessary to support businesses in coping with the recent depreciation of the cedi.
He highlighted the adverse impact of Cedi’s depreciation against major trading currencies on businesses, warning that this trend could lead to price increases in goods and other essential items. Yeboah pointed out that rising production costs and liquidity challenges are adding pressure on traders, hindering their competitiveness.
The continuous demand from local companies is contributing to the weakening of the cedi, with a year-to-date depreciation of approximately 14 percent. Currently, the dollar is trading at GHS 14.90 on the forex market, a significant increase from GHS 10.97 during the same period last year (May 2023).
The prevailing dollar rate echoes similar retail prices seen in the last quarter of 2022. Bloomberg also reports that this situation is worsened by a decrease in cocoa earnings, with exports declining by around $500 million in January and February 2024 due to adverse weather conditions and the prevalence of swollen shoot disease.
During an appearance on Ahotor 92.3 FM‘s morning show ‘Ade Kyee Mu Nsem‘ hosted by Citizen Kofi Owusu, Benjamin Yeboah reiterated the urgent need for the government to address the rapid depreciation of the cedi.
LISTEN TO BENJAMIN YEBOAH IN THIS AUDIO:
Story by: Emmanuel Romeo Tetteh (#RomeoWrites) / Ahotoronline.com
