Cedi depreciation must be halted to save industries – AGI

• Posted on March 18, 2019May 23, 2020
• by Ellsamwise King
• Comment

The Association of the Ghana Industries(AGI) has urged government to put in measures that will stabilize the cedi against the dollar.

This follows a recent announcement by the Finance Minister, Ken Ofori-Atta, that the free fall of the cedi against the dollar, will be curtailed in the coming weeks.

The cedi has depreciated against the dollar from GHC 4.9 to around GHC 5.50 since the beginning of the year sparking concern in the business community.

Speaking on the issue, the Chief Executive Officer of the Association Ghana Industries (AGI) Seth Twum-Akwaboah, said there is the need for a speedy implementation of pragmatic guidelines to halt the depreciation.

“In terms of the solution that the Bank of Ghana has proposed or the government has proposed by injecting some resources into the system, I think that is the right thing,” he said adding that “it should be done and it should be done quickly”.

Mr. Twum Akwaboah stated that businesses are struggling as nothing is done permanently to cushion them.

He pointed out that the development has created room for speculation to thrive.

“When we allow speculation to set in it worsens the situation, and therefore our call on government will be that there must be a quick resolution to the matter so that it doesn’t exacerbate further.”

For the Ghana Union of Traders Association (GUTA), the lack of stakeholder engagement to find effective ways of stemming the Cedi’s depreciation is not helpful.

Commenting on the state of the local currency, Public Relations Officer (PRO) of GUTA Joseph Padi, said the government needs to get as much consultation as it can from all stakeholders.

“If the depreciation continues in the current direction we will still see prices of goods and services going up. It’s extremely important to get a broader consultation in the sense that the players in the industry must appreciate what is really going on”