The Ghana Electronics and Musical Instruments Dealers Association has called upon the country’s Finance Minister, Ken Ofori-Atta, to address the persistent challenges posed by exchange rate fluctuations in the nation during the mid-year budget review. The association’s chairman, Vincent Osei, has urged the Finance Minister to consider pegging the cedi at a fixed exchange rate as a measure to reduce the cost of doing business in the country.
Speaking to Joy Business during the sidelines of a health screening event organized as part of the association’s 15th-anniversary celebration, Mr. Osei emphasized that a stable cedi would significantly contribute to lowering the expenses involved in conducting business operations in Ghana. He stated that the constant fluctuation of the cedi’s value against major foreign currencies was causing significant hurdles for business owners in the country.
Mr. Osei explained, “The main point is the cedi, no businessman in Ghana can work out things well if the cedi is fluctuating. But if the cedi is pegged at one position, then a businessman can sit and strategize very well. However, if the cedi is not pegged at one position, selling becomes difficult.”
The appeal comes amidst reports that the cedi remained stable against the US dollar in June 2023 and July 2024, indicating the positive impact of the International Monetary Fund (IMF) program on Ghana’s economy. Despite this recent stability, data from the Bank of Ghana revealed that the cedi had experienced a year-to-date depreciation of 22.1% as of July 21, 2023. This rate of depreciation had fluctuated over the preceding months, reaching 22.1% in March 2023, 21.7% in April 2023, 21.8% in May 2023, and 22.0% in June 2023. The initial two months of 2023 were particularly discouraging until the cedi stabilized against the dollar in March 2023.
The Electronics and Musical Instruments Dealers Association stressed the importance of consistent and robust cedi performance to create a more conducive business environment for its members and other entrepreneurs across various sectors. By fixing the cedi at a specific exchange rate, businesses would gain stability and be able to make informed decisions, plan ahead, and navigate economic uncertainties more effectively.
Ghana’s Finance Minister, Ken Ofori-Atta, is set to present the mid-year budget review to the parliament soon. The Association’s appeal will likely be a point of consideration during the budget review, as policymakers grapple with measures to bolster the nation’s economy and create a favorable environment for businesses to thrive.
source-Myjoyonline
