The President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, has urged the Bank of Ghana (BoG) to relax its stringent currency exchange regulations in light of the Cedi’s ongoing depreciation. This call underscores the growing concerns among traders and businesses who are grappling with the fluctuating exchange rates that are impacting their operations and profitability.
The depreciation of the Cedi has become a significant challenge for the Ghanaian economy, particularly for importers who depend on foreign currencies. The current restrictive currency exchange rules exacerbate these challenges by limiting access to foreign currency, driving up costs, and squeezing profit margins.
Speaking on Joy News, Dr. Obeng emphasized that the existing regulatory framework is inadvertently pushing more traders towards forex bureaus and the black market instead of mainstream banks. He noted that while these regulations aim to stabilize the currency and prevent capital flight, they are also stifling economic activity and growth.
“A more flexible approach is needed to support traders and businesses during these turbulent times,” Dr. Obeng stated. He highlighted the fear among traders due to the stringent documentation requirements imposed by the BoG. “If you make stringent documentation requirements, then people do not transact through the banks. For the Bank of Ghana, what you need is a bill of lading and then your transactional value; that should be enough. People will not be panicked about the accounting aspect of all that.”
Dr. Obeng proposed that the BoG consider temporarily relaxing these rules to provide relief to traders. Suggested measures include increasing daily foreign exchange limits for businesses and simplifying the process for accessing foreign currencies. He believes such steps would stabilize the market, boost confidence among traders, and ultimately contribute to economic recovery.
The GUTA president also stressed the importance of a collaborative approach between the government, the BoG, and the business community to navigate the ongoing economic challenges. He called for open dialogues and consultations to ensure that policy decisions are well-informed and consider the practical realities faced by businesses.
In response to similar calls in the past, the BoG has maintained that its policies are designed to safeguard the country’s foreign exchange reserves and maintain economic stability. However, with the Cedi’s depreciation continuing to impact the economy, there is a growing consensus that a balance must be struck between regulatory controls and economic flexibility.
Economic analysts have noted that while easing currency exchange rules might offer short-term relief, it is crucial for the government to address the underlying factors contributing to the Cedi’s depreciation. This includes improving export performance, attracting foreign investment, and implementing sound fiscal policies.
As the dialogue continues, traders and businesses across Ghana are hopeful that the BoG will take their concerns into account and introduce measures to mitigate the impact of the Cedi’s depreciation on their operations.
