Importers and exporters have expressed shock at the current cedi-to-US dollar exchange rate, thus, reminding Vice President Dr Mahamudu Bawumia to arrest the US dollar.
On the inter-bank market in Ghana, a US dollar trades at GHȻ5.20, GHȻ1 more than it exchanged for at the close of December 2016.
At that rate, Dr Bawumia told importers and exporters that the government of President Akufo-Addo, in which he is the head of the Economic Management Team, had arrested the appreciating US dollar and “locked it behind bars and handed the keys to the IGP.”
Despite that statement, the exchange rate has been fairly unstable, but the latest rate has sent a wave of fear in businessmen and women who have raised concerns that their businesses will suffer, particularly because their gains would be eroded.
Clement Boateng, Chairman of Abossey Okai Spare Parts Dealers Association, lamented that their profit margin, for months now, has drastically taken a nosedive, and considering the sharp fall of the cedi, he fears some businesses might fold up.
Albeit he lauded the government for abolishing the 10 percent import duty as it promised importers but he was quick to explain that importers still pay several taxes and levies at the ports to clear their goods.
For example, he said importers pay import VAT on import duty plus FOB in US dollars, though import duties have been abolished “and this is like one minus one in mathematics.
“In fact, the government must do all it can to get the cedi to appreciate against the US dollar, as it promised us it would do when it was campaigning to come to power. This is a painful headache and we need an immediate remedy,” Clement Boateng said.
By: Umar Sheriff/awakenewsonline.com
