The Ghana Federation of Traders has issued a two-week ultimatum demanding the government to bring down the exchange rate to GH¢10.00 per dollar. Failure to meet this demand will result in demonstrations by business associations.
Currently, the cedi is trading between GH¢15.17 and GH¢15.65 at leading Forex Bureaus.
In a statement dated Sunday, May 26, the federation emphasized that the ongoing depreciation of the cedi poses “a significant threat” to their businesses.
The federation indicated that the depreciation equates to depletion of capital, with business owners experiencing a 20 per cent loss in capital since the beginning of the year.
“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 GH¢15.50 to GH¢10.00,” the statement read.
The federation explained that a lower exchange rate is crucial for the growth and competitiveness of small and medium-sized businesses, which are currently navigating unprecedented economic challenges.
“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,” the statement continued. “As a result, many businesses face mounting financial pressure, endangering their ability to stay afloat and retain their workforce.”
The federation also criticized the current exchange rate under the Akufo-Addo-Bawumia administration, noting that the NPP had promised to reduce the rate during the 2016 election campaign.
“Looking at the comparative performance of the cedi against the dollar under successive governments, in 2008, the cedi was GH¢1.057 to the dollar. In 2012, it was GH¢1.972 to the dollar, whereas 2016 recorded GH¢3.945 to the dollar. The rate has skyrocketed from GH¢3.945 to GH¢15.17 under this current government, and it is distasteful to all business owners, and consumers, and generally impacts on livelihood.”
“We, therefore, call on all business owners, associations, trade unions, and all Ghanaians 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,” the statement said.
Below is the statement:
