Some traders on the market
TRADERS IN the country are complaining about the depreciation of the local currency against its major trading partner, the dollar, saying the development is affecting their capital.
They said the currency, which has depreciated by 16 percent from December 2021, could cripple businesses if the Government fails to urgently address it.
The depreciation of almost doubled in the first week of March to 14.21 per cent since the beginning of the year. This is against 7.6 per cent recorded at the end of February 2021.
Dr Joseph Obeng, President of the Ghana Union of Traders’ Association (GUTA), told newsmen that in December 2021, when the rate of the Cedi to a dollar was GH₵6.40, a trader could use GH₵640,000.00 to buy US$100,000.00.
However, he said: “Today, as the rate is about GH₵7.60 to a dollar, the same GH₵640,000.00 can buy only US$84,000.00, thereby, making a loss of USD16, 000.00, which is the 16 per cent depletion. Therefore, if one still wants to buy US$100,000.00, he/she needs to find additional GH₵120,000.00 to top up within this short period.”
Mr Charles Gyan, a kitchen ware importer, said: “As we speak, we’re losing about 16 per cent on our capital… If you lose your capital in this manner, and borrowing is very expensive then
He indicated that though the Government had done some work to stabilise the local currency,
“The current trend at which the Cedi is depreciating is very worrying, because it is going to increase prices.”
He noted that the development “Is worsening the cost of doing business, and it will make consumers run away from our products, which is a big problem for us. Because we cannot even do any proper projection as the rate keeps changing.”
He added that “This is pushing us to import less; sales is bad because the Ghanaian do not have that capacity to buy much, and this is eating into our capital, so we’re likely to reduce our import by about 20 to 30 per cent soon.” – GNA