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GUTA Cries Out Over Cedi’s Free Fall

The ongoing currency fluctuations have caused significant challenges for traders, making it essential for the government to intervene and stabilize the cedi's value.

The Ghana Union of Traders Association (GUTA) has expressed deep frustration over the current depreciation of the cedi, which has reached 15 cedis per dollar and against major trading currencies.

In a statement released on May 14, 2024, GUTA described the situation as “a big mess,” citing the severe impact on the trading community and the economy at large.

“The current state of affairs has far-reaching implications and has caused prices of goods and services to increase for the consuming public,” the statement reads. 

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Read also: Dollar Hits 15 Cedis Mark at the Forex Bureau

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The ongoing currency fluctuations have caused significant challenges for traders, making it essential for the government to intervene and stabilise the cedi’s value.

“The inflationary pressures resulting from the depreciating cedi have pushed the cost of goods through the roof, making it increasingly difficult for businesses to stay afloat,” the association said.

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GUTA characterised the current economic situation as a full-blown crisis, emphasising that the cedi’s rapid depreciation, combined with skyrocketing freight costs from Asia, has created an unsustainable business environment. The union stressed that the escalating expenses are making it extremely difficult for traders to operate, and urgent action is needed to mitigate the situation.

The statement noted that the current economic situation has had a ripple effect on the purchasing power of consumers, leading to a significant decline in business turnover. As the cedi continues to depreciate and freight charges escalate, traders are struggling to maintain their operations, and this has ultimately impacted the ability of consumers to purchase goods and services.

The association also highlighted the challenges faced by traders in repaying bank loans under these economic conditions. With the increasing cost of doing business and declining sales, traders are finding it extremely difficult to service their loans, further exacerbating the crisis in the trading sector.

“Repayment of loans to the bank has then become extremely difficult,” a portion of the statement reads. 

Furthermore, GUTA noted that the current economic climate has introduced unprecedented uncertainty into business operations and credit purchases, making it extremely challenging for traders to settle payments for goods imported from overseas suppliers, resulting in escalating business debt.

Find below the press statement:

 

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