Cedi Depreciation: Traders To Hit The Streets Over Continuous Fall Of Ghana's Local Currency To The Dollar

Cedi Depreciation: Traders To Hit The Streets Over Continuous Fall Of Ghana's Local Currency To The Dollar

  • Traders in Ghana are planning to hit the streets of Accra to protest the cedi's fall against major trading currencies
  • The Ghana Union of Traders Association says its members, hundreds of them, say the fall of the cedi is collapsing their businesses
  • The cedi currently sells at GH¢8.55 to $1 after losing 0.59% of its value on Monday, August 8, 2022

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A major demonstration is brewing in Accra as thousands of traders raise concerns about the continuous fall of the Ghana cedi against the dollar and other major trading currencies.

The leadership of the umbrella body of a huge number of traders, the Ghana Union of Traders Association (GUTA) has said members are agitating over the cedi's problems.

GUTA president Joseph Obeng said tension from members over the issue has "been huge".

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Traders and Ghana cedi
Traders have staged huge protests in the past over economic hardship and the fall of the cedi. Source: UGC/Getty Images, YEN.com.gh
Source: UGC

The cedi has been falling against major trading currencies, chiefly the US dollar, Pounds Sterling and Euro, since the start of 2022.

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Available data show that $1 was going for GH¢8.55 as at Monday August 8, 2022, a further depreciation of 0.59% of its value.

The traders, most of them importers of goods from China, United States and Europe among others, say their businesses were collapsing.

"We want to engage government...Government should let us know what the problem is so that we identify with them and know the input we can also make," Mr Obeng said.

GUTA has urgently proposed the setting up of a Foreign Exchange Committee to brainstorm solutions to the cedi's seeming unrestrained tumble. The committee involves representatives from government, the Bank of Ghana, traders and all relevant persons or groups involved in forex business.

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“If immediate remedial measures are not taken to control this alarming situation, we may be using One Million Ghana cedis to buy only One Hundred Thousand US dollars when the dollar reaches 10 Ghana cedis,” Mr Obeng fears.

UK-Based Economist Intelligence Unit Predicts Almost GH¢8 To $1 By End Of 2022

Meanwhile, YEN.com.gh reported in a previous report this year that UK-based Economist Intelligence Unit (EIU), a global economics analyst, predicted that the Ghana cedi will hit GH¢7.87 to $1 by end of 2022.

In April when EIU published the report, the local currency was selling at GH¢7.69 to a dollar,.

The prediction by the EIU was evidence of the cedi's troubles. The cedi had been struggling against major trading currencies since the start of the year.

The EIU report stated that the projection of the cedi fall by December this year will be influenced by the country’s heavy dependence on imports.

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Source: YEN.com.gh

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