Cedi Depreciation: GUTA Blames Dominance Of Foreigners In Key Sectors Of Economy

The Ghana Union of Traders (GUTA) is blaming the fast depreciation of Ghana’s cedi on the dominance of foreigners taking over the country’s economy.

The cedi hit a record low on Tuesday, July3 mainly due to global pressures as investors continued to exit emerging market assets, according to Reuters.

The currency of the major commodity exporter has weakened since the start of May, touching 4.8250 to the dollar on Tuesday.

The local currency is currently selling at 4.825 cedis to the dollar and could soon hit 5 cedis if measures put in place by the Central Bank makes little impact.

Yesterday, the Deputy Minority leader, James Klutse Avedzi told the Parliamentary press corps, the trend reflects weak fundamentals of the economy and a poor NPP government economic management team.

But GUTA President, Dr Joseph Obeng who spoke to Neil Armstrong-Mortagbe, host of the Morning Xpress on Radio XYZ, shared a strong opinion against the politicization of issues surrounding the depreciation of the currency.

He said the Union had already informed government officials the measures to take to save the situation yet they have refused to heed to their counsel.

Blaming the fall of the cedi against other currencies, he observed that the illegal transaction of other nationals had had impact on the free fall of the cedi.

“ …We’ve said that [government officials] that the dominance of foreigners in our key sectors of our economy is the blame…This people bring goods and they just repatriate the forms through illegal means,” he said.

“The cross border money transactions that is going on is also not helping” he said as he accused banks that operate across the sub region for aiding West Africans to trade in “forex” and send their funds back to their countries.

Dr Obeng suggested that the banks be monitored by “policy implementers” authorities to ensure that foreigners don’t “buy our money” but purchase goods with their funds.