Businesses, bearing the brunt of the local currency’s depreciation, have urged the government and the Bank of Ghana (BoG) to take immediate action to stabilize the falling cedi.
Companies in manufacturing, commerce, and other sectors have called for immediate action to address the persistent depreciation of the Ghana cedi against major international currencies, particularly the US dollar.
They stated that the falling cedi is slowing their businesses and increasing costs for consumers, who must pay more for both essential and luxury products.
The Ghana Union Traders Association (GUTA) and the Chamber of Automobile Dealership Ghana (CADEG) stated that the depreciating cedi has driven up the cost of goods and services, making it difficult for businesses to stay afloat.
The Ghana cedi is experiencing a record-breaking weakening cycle, depreciating by 14 percent against the dollar this year, partly due to foreign exchange (forex) supply shortfalls.
In January, the cedi traded at GH¢11.97 to the dollar on the interbank market and GH¢12.33 in the retail market. As of yesterday, it is being bought at GH¢13.9000 and sold at GH¢13.9140 to the dollar at the interbank rate.
At some forex bureaux in Accra, the dollar is being bought at GH¢15.00 and sold at GH¢15.30.
According to the Bank of Ghana’s (BoG’s) January 2024 Summary of Economic and Financial Data, the cedi started 2024 stronger than in the same period in 2023, when it lost 20.6 percent against the US dollar. In 2022, the cedi depreciated by 30 percent against the dollar.
The businesses want the government to take urgent steps to salvage the situation. The cost of vehicles, their parts, building materials and hardware, imported semi-finished and raw materials, electrical appliances, materials for the printing industry, among others, have all taken a hit in the recent spiral of cedi’s depreciation.
GUTA in a statement signed by its President, Joseph Obeng, said the cedi’s depreciation had created a big mess for the business community, especially the trading sector. “The purchasing power of the consuming public has been affected, thereby reducing the turnover of businesses,” he said.