The Ghana Union of Traders Association (GUTA) has proposed some measures to the Akufo-Addo-led administration to stop the cedi from falling further and address the ‘galloping’ inflation.
According to the Union, managers of the economy should adhere to their principles which have the potency to effect a change.
This comes two days after the association threatened to close down all their shops on Monday, August 29 2022 to protest the depreciation of the Cedi and the economic hardship.
In an interview on Angel FM’s Anopa Bofo Morning Show, the Greater Accra Regional Chairman of GUTA, said the Bank of Ghana (BoG) should introduce alternative means of trading with other countries other than the constant trading in the US Dollar.
He proposed that importers can deposit their funds in Ghanaian commercial banks and withdraw the money in the currency of the importing nation to reduce the need for dollars.
He explained further that the BoG can issue importers special cards that gives them access to bring in goods without issuance of the USD. This he said should be a collaboration between BoG and the exporting nations so that other currencies are used rather than the dollar.
“Most of our wares are imported from China, why can’t Bank of Ghana make regulations that importers should deposit their trading capital [in Cedi] into Commercial banks and upon reaching their destination remove their r and b in the host nation’s currency to make purchases. This is better than converting the Cedi to dollar always before trading with other nations… This takes the pressure off the dollar”, he remarked in the Twi parlance.
Mr. Peprah also suggested that government must support local companies and traders to expand their businesses instead of constantly aiding foreigners who later repatriate huge profits in dollars which contributes to the Cedi’s woes.
“We have spoken severally about the investment laws in the country but government has failed to pay heed to our counsel and that has security implications. We have sat back for foreigners to invade all our sectors from mining to banking, telecommunications and now trading…they will pay any amount to get dollars to send home”, he lamented.
He added that foreigners are willing to pay ‘ridiculous’ amounts for the dollar noting that “the dollar’s rise against the cedi didn’t start today and the rise was not as sharp as now…it has crossed the GHc10 mark and still rising. It is not readily available and people are making it worse by shooting it up.”
The Regional GUTA Chairman also criticized the contributions of Ghanaians to the Cedi’s fall saying that citizens are citizens are paying accommodation rent, buying houses and even paying school fees in dollars.
“This dollar dollar [business] is not just the citizens, government is the worst culprit…when you want to clear goods, they mention dollars…In case you start processes to clear goods today and you are unable to pay the duty and Monday comes, they wait for a new [dollar] rate and quote it to you to pay…so what signals are you sending as government to the people”, he blamed government.
He asked government to address these challenges to stop the cedi from depreciating further.
The cedi was recently graded as the worst performing currency against major trading currencies across the globe. It performed better than only the Sri Lanka rupee.
This came shortly after Ghana’s credit ratings was downgraded from “B- to CCC” and “B-B’ to CCC+C” by renown economic institutions – Fitch and Standard and Poor’s (S&P) respectively.
