The Ghana Union of Traders Association (GUTA) has issued a warning to Dr. Stephen Amoah, the Deputy Minister of Finance, cautioning him against making remarks that could inflame tensions within the trading community.
Dr. Joseph Obeng, the President of the Union, expressed disappointment in recent comments made by the deputy minister, attributing the ongoing depreciation of the cedi to GUTA members.
In an interview on Accra-based Onua FM, Dr. Amoah alleged that certain GUTA members engage in illicit black market currency exchanges, which he believes contributes to the cedi’s volatility against the US dollar.
In response, Dr. Joseph Obeng, President of GUTA, urged the deputy finance minister to collaborate with his counterpart, Dr. Amin Adam, to devise a sustainable solution to address the cedi’s devaluation against major foreign currencies.
“I perceive the deputy minister’s remarks as misguided and regrettable, and he ought to refrain from making statements that may incite the trading community. Many traders opt for forex bureaus or black market currency exchanges for their transactions, and this is a matter of choice,” Dr. Obeng told GhanaWeb Business.
“GUTA vehemently opposes the deputy minister’s endeavor to shift blame for the cedi’s instability. This serves as a distraction from the government’s duty to tackle the issue. The situation is intricate and warrants a holistic approach,” he emphasized.
Dr. Obeng cited South Africa as a prime example of a nation with a stable currency, attributing it to factors such as effective governance, sound policies, robust institutions, and collaboration between the government and stakeholders to address currency challenges.
“The trading community in Ghana is already grappling with exorbitant taxes, levies, and economic downturns. I advise the deputy minister to aid in finding enduring solutions to this persisting problem,” Dr. Obeng stressed.
“The government should also enact policies to address the depreciation matter definitively and offer clarity on black market currency exchanges and forex bureaus,” he added.
The GUTA president expressed readiness for its members to collaborate with the government in finding remedies to combat the continuous devaluation of the cedi against major foreign currencies.
Meanwhile, the Bank of Ghana attributes the cedi’s devaluation and recent developments in the foreign exchange market primarily to sentiments and public declarations.
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.