The steady fall of the cedi against the dollar and other major trading currencies is eroding the working capital of traders, especially the importing community, according to the Ghana Union of Trader Associations (GUTA).
With customs duties benchmarked in dollars, the free fall of the local currency is crippling trade and commerce, leading to untold hardships for both businesses and consumers, the association argued.
According, its president, Dr. Joseph Obeng, the sinking cedi has created “a big mess” for the business community, with its accompanying inflationary pressures pushing cost of goods through the roof.
“The current depreciation of the cedi, coupled with the ever-rising freight charges from Asia, has rendered the cost of doing business unbearable,” the GUTA president said in a press statement.
Dr. Obeng indicated that high cost of living, linked to the cedi depreciation, has grossly affected purchasing power of consumers, and directly reduced turnover of businesses.
He added: “The current state of affairs has far-reaching implications, causing the prices of goods and services to increasing for the consuming public.”
The association has urged government to step up efforts at addressing the situation, promising their readiness to work with all stakeholders in that regard.