The Ghana Union of Traders Association (GUTA) has cancelled plans to close shops of their members on Monday, 29 August 2022, in protest of the cedi depreciation.
This decision came after a crunch meeting between their leadership and the Council of State held yesterday 25 August 2022.
A joint committee made up of some members of GUTA, and the Council of State was set up to look into the concerns of the traders and proffer possible solutions.
Speaking after the meeting, the President of GUTA, Dr. Joseph Obeng, said the issues to be deliberated upon include interest rate, exchange rate, and the influx of foreigners within the local markets in the country.
He added that the committee will commence its work on Monday 29 August 2022.
Meanwhile, the “leadership of GUTA will meet the Council of State again after a month.”
Meanwhile, the Bank of Ghana (BoG) has embarked on several measures to arrest the cedi, including the clampdown on illegal activities by forex bureaus.
The apex bank also raised its Monetary Policy Rate (MPR) to 22% after its last meeting to stem galloping inflation which is currently at 31.7%.
Background
The Ghana Union of Traders Association (GUTA) announced on Monday 22 August that it will close all shops belonging to its members in Accra on Monday, 29 August 2022, to protest the rapid depreciation of the Ghana cedi.
Addressing a press conference in Accra, GUTA said the weakened cedi is ravaging their business.
The President of GUTA, Dr. Joseph Obeng, cited VAT Standard, the huge influx of foreigners in the retail business, and the activities of the black market as contributing factors to the woes of Ghanaian traders.
“The Monetary Policy Rate is 22%, meaning that Commercial Lending Rate is over 35%, VAT Standard Rate of 19.25% instead of flat rate of 4%. The huge influx of foreigners in the retail business against our investment loss. Do not review any system to increase duties on importing Second-hand clothing. Listen to the concerns of car dealers. Withdraw compulsory maritime insurance policy. We don’t think you should blame us for the high prices of goods in the market. The activities of the black market are also a matter of concern.”
He then called on the government to immediately address their concerns to alleviate the economic hardship in the country.
“These have gotten out of hand and need immediate solutions before things get out of hand. We have decided to close all shops from Monday to officially register our displeasure to the government,” he stated.