Consumers are, therefore, to brace themselves for potential price hikes in goods and other foodstuff as the increasing cost of production and liquidity constraints put pressure on traders and hamper their ability to compete.

The traders also say customs duties pegged in dollars are severely impacting trade and commerce as inflationary pressures have led to a surge in the prices of goods and services.

Dr Joseph Obeng, President of the Ghana Union of Traders Association demanded urgent government intervention.

In an interview with Citi News, Dr. Obeng said, “The depreciation of the Cedi is affecting businesses and it is very important for us to stabilise the local currency because it is pushing other factors like inflation. The purchasing power of consumers keeps depleting due to high prices.

“They are not able to buy from us and it is affecting our turnover to the extent that we are unable to service our debts at the bank. That is why we are drawing the government’s attention to our plight to find a more sustainable solution to our plight”.

In a separate statement, GUTA expressed its “readiness to collaborate with the government and other stakeholders on this issue”.

“GUTA expresses its readiness to collaborate with the government and other stakeholders on this issue,” it added in a statement dated May 14.

Persistent local corporate demand continues to weaken the local currency.  The year-to-date loss on the cedi stand at about 14 percent.

Currently, a dollar is selling at GHS 14.90 on the forex market and it is significantly up from the GHS 10.97 it was been sold for same period last year.

The prevailing rate of the dollar reflects a similar retail price in the last quarter of 2022.

Bloomberg also reports that the situation is being exacerbated by a decline in cocoa earnings as exports fell by about the $500 million dollars in January and February 2024 due to poor weather conditions and the swollen shoot disease.

It adds that the current developments depict the Cedi’s record-breaking weakening cycle.

Analysts are forecasting worse times for the currency over elevated risks of election year funding and stalled debt deals.

Rating agency, Fitch however forecasts the Cedi to end 2024 at GHS 12.25 to a dollar.

“Indeed, the cedi has been on a rapid depreciatory trend since February 2024, caused by investor concerns over Ghana’s progress of restructuring its commercial debt, as well as the sustained strength of the US dollar. We also expect that the Ghanaian cedi will recoup some of its recent losses in the months ahead, ending the year at GH¢12.25/USD”.