Cedi depreciation: GUTA sends proposal to govt

Dr. Joseph Obeng

The Ghana Union of Traders Association (GUTA) is calling on government to, as a matter of urgency, peg the dollar for the purpose of duty payments, at least quarterly to mitigate the plight of the business community.

According to the Association, the Bank of Ghana’s weekly exchange rate quoted by the Customs Division of the Ghana Revenue Authority has seen a sharp rise from ¢8.2 to ¢9.5, thereby shooting up duty charges at the ports to about 30%.

GUTA also claims that, following the injection of the $750 million into the system, the dollar is heading to ¢11, a situation it laments is unbearable and needs swift intervention from the government to save businesses from collapse.

A Statement from the Association said “within a few days of injecting about $ 750m into the system, the dollar is heading to 11. This has brought a great deal of confusion, frustration and exasperation in the business sector, especially, in the importing community, as well as the consuming public. 

“To make matters worse, the Bank of Ghana’s weekly exchange rate for Ghana Revenue Authority-Customs Division has also risen from 8.2 to 9.5, which happened overnight. The change has shot up duty charges to about 30%.”

“This situation is unbearable and needs swift action from the government to save businesses. As a result, GUTA is calling on the Government to, as a matter of urgency, peg the dollar for the purpose of duty payments, at least quarterly, to mitigate the plight of the business community,” it added.

PRESS STATEMENT ON THE ALARMING RATE OF THE DOLLAR TO THE CEDI

WHAT CAN WE DO AT THIS POINT?

TRADERS ASK, AS THE CEDI IS ABOUT ELEVEN (11) GHANA CEDIS TO THE DOLLAR

Within a few days of injecting about US $ 750m into the system, the dollar is heading to eleven Ghana cedis (Gh11). This has brought a great deal of confusion, frustration and exasperation in the business sector, especially, in the importing community, as well as the consuming public. 

To make matters worse, the Bank of Ghana (BOG) weekly exchange rate for Ghana Revenue Authority-Customs Division has also risen from 8.2 Ghana Cedis to 9.5 Ghana Cedis, which happened overnight. The change has shot up duty charges to about 30%.

This situation is unbearable and needs swift action from the Government to save businesses. As a result, Guta is calling on the Government to, as a matter of urgency, peg the dollar for the purpose of duty payments, at least quarterly, to mitigate the plight of the business community. 

At this stage, it is becoming extremely difficult to service our bills, as well as pay our duty.

The question here is, what can we do at this point in time to continue to be in business?

In view of this hard situation,we find ourselves in, we would like to humbly appeal to the  relative institutions particularly Bank of Ghana and Ministry of finance,  that came before the Joint Committee set up by the Office of the Council of State to expedite the necessary action for prompt response. 

We are also by this release reminding  government that depleting funds without being replenished is the number one cause for business failure.

Dr. Joseph Obeng 

GUTA President