Cedi depreciation: ‘Stop provoking us’ – GUTA reacts to Dr. Stephen Amoah’s comments

The Ghana Union of Traders Association (GUTA) has cautioned the Deputy Minister of Finance, Dr. Stephen Amoah, against making comments that may provoke the trading community.

President of the Union, Dr. Joseph Obeng, stated that recent remarks by the deputy minister blaming GUTA members for the ongoing decline of the cedi are regrettable and misguided.

During an interview on Accra-based Onua FM, Dr. Amoah accused some GUTA members of using black market currency exchange services, which he believes is the reason for the cedi’s instability against the US dollar.

In response, GUTA President Dr. Joseph Obeng urged the deputy finance minister to work with his sector minister [Dr. Amin Adam], to find a lasting solution to the cedi’s depreciation against major trading currencies.

“I believe the deputy minister’s comments are misguided and unfortunate, and he should avoid making statements that could provoke the trading community. Many traders’ resort to forex bureaus or black market currency exchange services to purchase their goods and this is by choice,” Dr. Obeng told GhanaWeb Business.

“GUTA strongly disagrees with the deputy minister’s attempt to shift blame for the cedi’s instability. This deflects attention from the government’s responsibility to address the issue. The situation is complex and requires a comprehensive approach,” he stressed.

Dr. Obeng pointed to South Africa as an example of a country with a stable currency due to factors such as good governance, effective policies, strong institutions, and collaboration between the government and stakeholders to address currency challenges.

“The trading community in Ghana is already struggling with high taxes, duties, and the economic downturn. My advice is for the deputy minister to help find lasting solutions to this ongoing problem,” Dr. Obeng emphasized.

“The government should also implement a policy to tackle the depreciation issue once and for all and provide clarity on black market currency exchange services and forex bureaus,” he added.

The GUTA president expressed readiness for its members to assist the government in finding solutions to combat the continuous decline of the cedi against major trading currencies.

Meanwhile, the Bank of Ghana believes that the depreciation of the cedi and recent developments in the foreign exchange market are largely driven by sentiments and public statements.

As of May 29, 2024, the local currency is trading at GH¢15.00 to $1 on the forex market and selling at GH¢14.02 on the BoG interbank market.