The Minority in Parliament has issued a stark warning about the worsening state of the Ghanaian Cedi, predicting a further decline in its value. With the Cedi now reaching GH₵15 to the dollar, traders have begun transferring the increased costs to consumers, leading to significant price hikes for goods and services.
Minority Leader Dr Cassiel Ato Forson, speaking to journalists in Parliament on Wednesday, May 15, 2024, highlighted the severe impact of the Cedi’s depreciation on businesses in key commercial areas such as Okaishie, Abossey Okai, and Kejetia.
“In spite of the huge inflows of foreign exchange from the IMF and the World Bank, into the Ghanaian economy, and I’m talking of billions of Ghana cedis, billions of US dollars, the government’s action and its management of the cedi have continued to fuel steep depreciation with no end in sight unfortunately.”
“So far, the decisions of the Economic Management Team, chaired by our Vice President Alhaji Bawumia leaves a lot to be desired. The reality of the Ghanaian economy today exposes the credentials of the so-called economic wizkid who was marketed as the saviour of Ghana’s economy. Alhaji Bawumia’s credibility is now tatters.”
The Ajumako-Enyan-Esiam MP also expressed concern that Vice President Bawumia, also the New Patriotic Party’s flagbearer, is more focused on his election campaign than addressing the economic crisis.
“We urge the Vice President to quit his off-beat dancing on the campaign trail and focus on the dancing Ced,” he added.
The depreciation of the Cedi has hit traders hard across the country. Many in the business community are struggling with mounting debt due to the falling currency. The Food and Beverages Association of Ghana (FBAG) has reported that the credit-based business model prevalent in Ghana has exacerbated the situation, making it difficult for importers to repay their suppliers.
The Ghana Union Traders Association (GUTA) has also voiced its frustration over the declining value of the local currency, emphasizing the widespread impact on traders nationwide.
