HomeHeadlineCedi's Depreciation Forces Price Hike as Traders Struggle to Restock and Repay...

Cedi’s Depreciation Forces Price Hike as Traders Struggle to Restock and Repay Loans

Traders are struggling to restock and repay bank loans due to the cedi’s free fall. This is coupled with high port charges.

Consumers are, therefore, to brace themselves for potential price hikes in goods and other foodstuff as the increasing cost of production and liquidity constraints put pressure on traders and hamper their ability to compete.

The traders also say customs duties pegged in dollars are severely impacting trade and commerce as inflationary pressures have led to a surge in the prices of goods and services.

Dr Joseph Obeng, President of the Ghana Union of Traders Association demanded urgent government intervention.

In an interview with Citi News, Dr. Obeng said, “The depreciation of the Cedi is affecting businesses and it is very important for us to stabilise the local currency because it is pushing other factors like inflation. The purchasing power of consumers keeps depleting due to high prices.

“They are not able to buy from us and it is affecting our turnover to the extent that we are unable to service our debts at the bank. That is why we are drawing the government’s attention to our plight to find a more sustainable solution to our plight”.

In a separate statement, GUTA expressed its “readiness to collaborate with the government and other stakeholders on this issue”.

“GUTA expresses its readiness to collaborate with the government and other stakeholders on this issue,” it added in a statement dated May 14.

Persistent local corporate demand continues to weaken the local currency.  The year-to-date loss on the cedi stand at about 14 percent.

Currently, a dollar is selling at GHS 14.90 on the forex market and it is significantly up from the GHS 10.96 it was been sold same period last year.

The prevailing rate of the dollar reflects a similar retail price in the last quarter of 2022.

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