Sunday, 23 June

Reduce exchange rate in 2 weeks or we demonstrate – GHAFET tells gov’t

GHAFET emphasised the severe impact of the current exchange rate trajectory on the sustainability and viability of businesses

The Ghana Federation of Traders (GHAFET) has called on the government to take immediate action to reduce the exchange rate from GHS 15.50 to GHS 10.00. 

In a press statement co-signed by its Chairman, Eric Kwaku Boateng; Director of Communication, Benjamin Takyi Addo; Dep. Director of Communication, David Kojo Amoateng, and the leaders of other traders’ groups in the country, the collective voice of traders' groups, GHAFET emphasised the severe impact of the current exchange rate trajectory on the sustainability and viability of businesses. 

“Fluctuations in currency values have greatly inflated the cost of imports, pushing operational expenses to unsustainable levels.

 “As a result, many businesses are facing mounting financial pressure, endangering their ability to stay afloat and retain their workforce,” the statement noted.

The depreciation of the cedi has not only affected businesses but also eroded traders’ capital, despite numerous government assurances to stabilize the economy. 

GHAFET pointed out the comparative performance of the Cedi against the dollar under successive governments, noting that the rate has skyrocketed from GHS 3.945 in 2016 to GHS 15.17 under the current administration. 

This increase, GHAFET described as “distasteful to all business owners, consumers, and generally impacts on livelihood.”

It indicated that: “By reducing the exchange rate, the government can empower businesses to thrive, spur investment, and stimulate economic recovery in these trying times.”

The traders' federation warned that without immediate intervention, the future of businesses hangs in the balance.

The traders’ federation hinted at plans to embark on a demonstration should government fail to heed to its demands.

“We promise to stage a strong nationwide demonstration if the government fails to address the situation swiftly in two weeks,” the statement declared, urging all business owners, associations, trade unions, and Ghanaians affected by the cedi's depreciation to join their cause.

The statement added: “We stand united in our appeal to the government to prioritise the welfare of businesses by swiftly reducing the exchange rate. Together, we can pave the way for a resilient economy that offers opportunities for prosperity and growth.”

Source: Adiku