The depreciation of the cedi must be stopped to save industries – AG

Company News of Monday, March 18, 2019

Source: citinewsroom.com

2019-03-18

The Ghana Association of Industries (AGI) has urged the government to take steps to stabilize the cedi against the dollar.

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

The cedi has depreciated against the US dollar, rising from 4.9 to 4.50 GHC since the beginning of the year, causing concern among the business community.

Speaking on the issue, Seth Twum-Akwaboah, chief executive of the Ghana Industries Association (AGI), said it was necessary to quickly implement pragmatic guidelines to end the depreciation.

"Regarding the solution proposed by the Bank of Ghana or the government by injecting resources into the system, I think it's the right thing," he said, adding that "this should to be done and this should be done quickly "

Mr. Twum Akwaboah said that companies are struggling because nothing is being done to protect them.

He pointed out that development has created a space for speculation.

"When we allow speculation to take hold, it worsens the situation and, therefore, we ask the government to quickly resolve the matter so that it does not exacerbate further."

For the Trades Union of Ghana (GUTA), the lack of commitment of stakeholders to find effective ways to stem the depreciation of the Cedi is not helpful.

Commenting on the state of the local currency, GUTA Public Relations Officer (GU) Joseph Padi said the government needed to get as much consultation as possible from all stakeholders.

"If depreciation continues in the current direction, we will always see prices for goods and services rise. It's extremely important to get broader consultation as industry players need to understand what's really going on. "