Cedi depreciation: Our capital has depleted by 16% since December 2021 to date - GUTA

GUTA President Dr Joseph Obeng121212121 President of GUTA, Dr. Joseph Obeng

Tue, 8 Mar 2022 Source: www.ghanaweb.com

Cedi struggles against US Dollar

Cedi ranked worst performing currency among 15 African nations in two months

GUTA calls for consented efforts to address cedi depreciation

The Ghana Union of Trade Association (GUTA) has expressed worry over the rapid depreciation of the cedi against major trading currency, the US Dollar.

A statement issued and signed by the President of the Union, Dr. Joseph Obeng, stated that the situation is taking a heavy toll on the capital of its members and wreaking havoc on businesses and the consuming public.

“From December 2021 to date, our capital has been depleted by about 16 percent. In December 2021, when the rate of the cedi to the dollar was GH¢6.4, a trader could use GH¢640,000 to buy US$100,000. Today, as the rate is about GH¢7.6 to a dollar, the same GH¢640,000 can buy only GH¢84,000, thereby making a loss of US$16,000 which is the 16 percent depletion,” GUTA explained.

The Association further worries that “If a trader still wants to buy US$100,000, they will need an additional GH¢120,000 to top up within this short period.”

GUTA president, Dr. Joseph Obeng who described the situation as rather serious therefore appealed to government to find urgent solutions to curtail the further depreciation of the local currency against major trading currencies in order to save businesses and the economy at large.

“It will require consented efforts by engaging all relevant stakeholders for urgent discussion and immediate solution to this menace,” Dr. Obeng added.

Meanwhile, the Ghana cedi, according to a 15-nation ranking released by Databank, has now been ranked as the worst-performing currency in Africa with just two months into 2022.

The development is due to the cedi’s depreciation of about 7.60 percent to major trading currency, the US Dollar, from January 1, to February 25, 2022.

Source: www.ghanaweb.com
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