The Trades Advocacy Group Ghana (TAGG) has expressed deep concern over the rapid depreciation of the Ghanaian cedi against the US dollar and other foreign currencies, warning of the potential for significant price hikes across the country. In a statement released on September 11, 2024,
TAGG highlighted the severe economic implications of the cedi’s downward spiral, which has seen the exchange rate plummet from ₵14 to ₵16 in a short period, with projections that it could reach ₵20 by December 2024.
The weakening cedi has led to skyrocketing import costs, particularly for traders who rely on imported goods.
As these costs are passed on to consumers, the result is increased inflationary pressure in the domestic market, further eroding the purchasing power of Ghanaians.
This situation has led to a reduction in demand for goods and services, exacerbating the financial strain on both businesses and consumers.
TAGG also emphasized the broader economic challenges posed by the cedi’s decline, including the rising cost of servicing foreign debts and importing essential raw materials.
These issues are likely to stifle economic growth and development, as businesses may be forced to cut back on investments and job creation due to escalating operational costs.
“The current depreciation of the cedi is creating unprecedented financial pressures on businesses,” said Kwadwo Amoateng, President of TAGG.
“If this trend continues, traders will have no choice but to raise prices, making essential goods and services even more expensive for consumers. This is a crisis that requires immediate attention from the government and the Bank of Ghana.”
TAGG has called on the government of President Nana Addo Dankwa Akufo-Addo to take swift and decisive action to stabilize the cedi and address the underlying factors contributing to its depreciation.
The group stressed that without intervention, the continued weakening of the currency could lead to further economic hardship for Ghanaians, with long-lasting effects on the country’s stability and prosperity.
TAGG remains committed to advocating for fair business practices and protecting the interests of both consumers and businesses.
The Group urged all stakeholders, including policymakers and the general public, to work together in finding sustainable solutions to the cedi’s depreciation and its associated economic challenges.
“Long live TAGG, long live Ghana,” concluded the statement, underscoring the group’s dedication to supporting the nation’s economic well-being.