A coalition of traders’ groups calling itself Ghana Federation of Traders (GHAFET) is appealing to government for an immediate action to be taken to reduce the exchange rate.
They are demanding a significant scaling down of the exchange rate from GHC15.50 to GHC10.00.
The traders have indicated that the current exchange rate poses a threat to the sustainability and viability of their businesses.
Fluctuations in currency values according to them have greatly inflated the cost of imports, pushing operational expenses to unsustainable levels accounting to fold up of businesses.
The traders made up of Automobile Dealers Union Ghana, Abossey Okai Spare Parts Dealers Association, Traders Advocacy of Ghana and other trader groups in a joint press release are demanding a lower exchange rate to safeguard their livelihoods.
Below is the full press statement.
PRESS RELEASE BY GHANA FEDERATION OF TRADERS (GHAFET)
MAY 26, 2024
SUBJECT: TRADERS UNITE TO URGE GOVERNMENT ACTION FOR EXCHANGE RATE REDUCTION
Today, a collective voice of traders groups from across the nation has come together to urgently appeal to the government for immediate action to reduce the exchange rate from Ghc 15.50 to Ghc 10.00. As small and medium-sized businesses navigate through unprecedented economic challenges, a lower exchange rate is imperative to foster growth, ensure competitiveness, and safeguard the livelihoods of countless businesses and their employees.
The current exchange rate trajectory poses a significant threat to the sustainability and viability of our 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.
It is evident that a high exchange rate not only hampers the growth prospects of businesses but also undermines the overall economic stability of the nation. By reducing the exchange rate, the government can empower businesses to thrive, spur investment, and stimulate economic recovery in these trying times.
The depreciation of the cedi is not only affecting businesses but also eroding traders of their capital.
Despite numerous government assurances, the situation is still getting worse, and it is obvious that government is lackadaisical in finding lasting solutions in reducing the exchange rates and also stabilizing the economy.
Looking at comparative performance of the cedi against the dollar rate under successive government, in 2008, the cedi was Ghc 1.057 to the dollar. 2012 recorded Ghc 1.972 to the dollar, whereas 2016 recorded Ghc 3.945 to the dollar.
The rate has skyrocketed from Ghc 3.945. to Ghc 15.17 under this current government, and it is distasteful to all business owners, consumers and generally impacts on livelihood.
Traders play a vital role in driving economic growth, creating job opportunities, and fostering innovation.
However, without immediate intervention to address the exchange rate issue, the future of businesses hangs in the balance.
We call upon the government to prioritize the needs of businesses and take decisive steps to lower the exchange rate, thereby providing a lifeline to struggling enterprises.
We promise to stage a strong nationwide demonstration if government fails to address the situation swiftly in two weeks.
In conclusion, we stand united in our appeal to the government to prioritize 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.
We therefore call on all business owners, associations, trade unions and all Ghanaian who have been negatively affected by the depreciation of the cedi to join the Ghana Federation of Traders to stage a strong demonstration against the government if drastic measures are not put in place in the next two weeks.
For media engagement, kindly contact 0244695900, 0244369057 or 0244215457
Copy to All Media Houses
(Signed)
Eric Kwaku BOATENG. Chairman 0244695900
Benjamin Takyi ADDO Director of Communication 0244369057
David Kojo Amoateng Dep. Director of Communication 0244215457
AUTOMOBILE DEALERS UNION, GHANA ERIC KWAKU BOATENG (NATIONAL PRESIDENT)
ABOSSEY OKAI SPARE PARTS DEALERS ASSOCIATION BENJAMIN TAKYI ADDO (DIRECTOR OF COMMUNICATION)
TRADERS ADVOCACY GROUP OF GHANA (TAGG DAVID KOJO AMOATENG (PRESIDENT)
GHANA UNION OF TEXTILES & GARMENTS MADAM SARAH ARHIN (CHAIRPERSON)
GHANA UNION OF BEAUTY & COSMETICS NADIA IDDRISU MOHAMMED (CHAIRPERSON)
GHANA UNION OF SECOND HAND FRIDGE DEALERS PATRICK YAW KUMI (CHAIRMAN)
GHANA UNION OF SECOND HAND CLOTHING GEORGINA ADWOA NSIA YEBOAH (GENERAL SECRETARY)
