Federation Of Traders Gives Government Two Weeks To Reverse Cedi Deprecation By Over 30 Percent

• The Ghana Federation of Traders has called on the government to take measures to lower the exchange rate from GH¢10 to $1
• The federation has given the government two weeks from May 27, 2024, to respond to its concerns
• The Federation Deputy Communications Director, David Kojo Amoateng, told YEN.com.gh this level of depreciation was out of the ordinary

The Ghana Federation of Traders has called on the government to take measures to lower the exchange rate to GH¢10 for $1.

The federation, which consists of eight groups, is giving the government two weeks to respond to its concerns about the depreciation rate.

It has complained that the cedi's depreciation is depleting its members' capital and businesses. Currently, a dollar is selling at GH¢14.60 on the forex market.

Eric Kwaku Boateng, Chairman of the Ghana Federation of Traders and President of the Automobile Dealers Union, told Citi News that nationwide protests would occur if nothing changed within two weeks.

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The Federation's Deputy Communications Director, David Kojo Amoateng, told YEN.com.gh that it was strange that this much depreciation occurred at this time of year.

“I have never seen April/May that you will see the dollar and the cedi dancing this kpanlogo.”

Dr Mohammed Amin Adam, the finance minister, recently urged Ghanaians to halt their panic buying of dollars.

He said the panic buying further exacerbates other external and internal pressures on the cedi, resulting in its freefall.

He added that the government had instituted several measures to boost the cedi, but the results would not be realised until panic buying stops.

Call to dollarise Ghana's economy

The Institute of Economic Affairs (IEA) has proposed adopting the dollar to protect 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.

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"It's eroding the cedi": Finance minister urges Ghanaians to cease panic buying dollars

Dr John Kwabena Kwakye, the institute's director of research, said this would be a temporary measure until the economy stabilised.

Ghana to secure third tranche of IMF bailout money

YEN.com.gh reported that Ghana is on track to secure board approval from the third tranche of $360 million out of its $3 billion IMF support.

The government's support programme is said to be showing better-than-expected results.

Ghana has received $1.2 billion in IMF funding so far and is nearing the approval process for the next disbursement.

Source: YEN.com.gh