Executive Member of the Ghana Used Clothing Dealers Association, Aikins Mensah, says the depreciation of the cedi against the dollar has negatively impacted their business.
Responding to concerns raised by some Ghanaians over how used clothing has become expensive, he said the situation should be blamed on the depreciation of the cedi.
He stated that the cedi has been depreciating strongly against numerous currencies, particularly the US dollar, for some time, resulting in rising retail costs.
The depreciation he mentioned has grown more normal, in the sense that the cedi is depreciating on a daily basis.
The cost of the dollar, he lamented, keeps changing every twenty-four hours, and it is a major threat to businesses that the government ought to address.
Appearing on Frontline on Rainbow Radio 87.5FM, he said the effects on importers are that they are struggling to stay in business due to the high cost of importing and clearing goods from Ghanaian ports.
He told host Kwabena Agyapong that some importers are unable to raise enough money to finance planned imports.
He stressed the need for the government to adopt measures to address the challenge because “this is a major crisis. The depreciation of the cedi is threatening us. We pray the cedi will appreciate against the dollar for even a period of 3 months, and things will change a bit. The depreciation is now on a daily basis.
You will call someone today and ask about the price of a dollar, and the next day, the price has changed. This is dangerous for business owners. The price abroad for the goods has not changed. The challenge confronting us is the depreciation of the dollar. For the several years I have imported from China, the price has never changed, but the depreciation of the cedi is what is causing the problem. That is why we are appealing to the government to do something about it.”
He also appealed to the government to reduce the cost of duty at the ports to give importers some relief.
“The more people import, the more revenue the government will generate. It is important to note that dealing with the cedi depreciation has become a challenge. That is why we are appealing for the cost of duty to be reduced. Several businesses have been hit hard. The number of imports has decreased drastically. Those who used to import five containers are now importing two, so you can imagine what will happen to those who import two containers.”
Meanwhile, it is not only used clothing dealers who have been affected.
The situation is affecting all sectors of the economy, including consumer and household goods, cosmetics, processed foods, and pharmaceuticals.
By: Rainbowradioonline.com/Ghana
