Cedi Depreciation: Prices Of Goods To Increase As Traders Can’t Restock, Repay Bank Loans

Cedi Depreciation: Prices Of Goods To Increase As Traders Can’t Restock, Repay Bank Loans

  • Traders are concerned that the depreciation of the Cedi is affecting their businesses negatively
  • The Ghana Union of Traders Association has said it is ready to collaborate with the government to address these challenges
  • The Executive Secretary for the Importers and Exporters Association of Ghana told YEN.com.gh that the government needed to intervene

Traders reportedly struggle to restock and repay bank loans due to the Cedi’s depreciation and high port charges.

Consumers are expected to be hit with price hikes because of the increasing cost of doing business.

Cedi depreciation to affect cost of goods.
The cedi is selling at about GH¢14.75 to $1.
Source: Getty Images

Dr Joseph Obeng, President of the Ghana Union of Traders Association, called for government intervention in an interview with Citi News.

"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."

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The union also noted that it was ready to collaborate with the government on these challenges.

Call to dollarise Ghana's economy

Institute of Economic Affairs (IEA) recently proposed that Ghana adopt the dollar to stabilise the economy.

According to the Director of Research at IEA, Dr John Kwabena Kwakye, this should temporarily stabilise the economy.

Adopting the dollar means Ghana would have to either abandon the use of the cedi entirely for the dollar or use the dollar and the cedi interchangeably.

Kwakye said this should be a stopgap to fix the destabilised economy until it rebounds.

The Executive Secretary for the Importers and Exporters Association of Ghana, Sampson Asaki Awingobit, told YEN.com.gh that this call was not prudent.

“What I think is the government must put measures in place to be able to control the cedi from further depreciation.”

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"GH¢14.5 =1 dollar": Economist says cedi will continue depreciating into the foreseeable future

Ghana to become the first blockchain-powered government in Africa

YEN.com.gh reported that Vice President Mahamudu Bawumia wants to make Ghana the first blockchain-powered country in Africa.

He said public sector corruption will be stopped by using blockchain technologyin the governance structure.

This technology will follow the rollout of the e-Cedi, which the vice president believes would help the country fight financial crimes.

Proofreading by Berlinda Entsie, journalist and copy editor at YEN.com.gh

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Source: YEN.com.gh

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