The Trades Advocacy Group Ghana (TAGG) has expressed concern over the recent depreciation of the Ghanaian cedi against the US dollar, warning of potential price hikes that could hit consumers hard in the coming months.

In a press statement, TAGG urged the government and the Bank of Ghana to take immediate steps to stabilize the currency and prevent further economic decline.

"The weakening of the cedi has driven up the price of imported goods, forcing traders to increase prices for consumers, thereby fueling inflation. This situation is unsustainable and is already eroding the purchasing power of ordinary Ghanaians," part of the statement said.

TAGG warned that if these trends continue, traders will have no choice but to pass the higher costs on to consumers, resulting in a surge in prices for essential goods and services.

The group's President, Kwadwo Amoateng, stressed the urgency of the situation stating, "We are calling on the government and the Bank of Ghana to act swiftly to halt the cedi’s freefall. If no action is taken, we fear a severe economic crisis that will affect both businesses and households."

TAGG emphasised that the depreciation of the cedi not only threatens the stability of the business sector but also jeopardises Ghana’s economic growth prospects.

“We understand the global economic challenges, but the Ghanaian government must take responsibility for addressing the local factors contributing to the cedi's weakness.

"Failure to do so will only exacerbate the hardships being faced by businesses and consumers alike," the trade group stressed.

The cedi's value has plummeted significantly in recent weeks, with the exchange rate shifting from GH¢14 to GH¢16 per US dollar and predictions that it could reach GH¢20 by the end of December 2024.



AM/MA

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