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Govt’s failure to stabilize the cedi could cause artificial food shortage – IEAG

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The Executive Secretary of the Importers and Exporters Association of Ghana, Samson Asaki Awingobit, has issued a stern warning to the government regarding the ongoing depreciation of the cedi against the US dollar.

He urged the Ministry of Finance to adopt practicable strategies to stabilize the exchange rate, cautioning that failure to do so could precipitate an artificial food shortage in the country.

Speaking on A1 Radio Bolgatanga during a regional tour, Mr. Awingobit highlighted the adverse impact of the current exchange rate, which stands at 16 cedis to one US dollar, on the business community.

He noted that many importers, particularly those dealing in essential foodstuffs like rice and frozen chicken, are finding it increasingly difficult to sustain their operations.

“The business community, especially those who import foodstuffs into the country, are hesitating to bring in goods because the cedi’s poor performance against the US dollar is severely affecting their businesses,” Awingobit explained. “They are unable to break even. Some importers are struggling to set price tags on their goods to ensure profitability.”

Mr. Awingobit stressed that importers are facing significant financial strain, which has led to a slowdown in the importation of vital food items.

This slowdown, if not addressed promptly, he added, could lead to shortages in the market, affecting food security in the nation.

The executive secretary therefore urged the government to implement practical measures to curb the depreciation of the cedi, ensuring a more stable economic environment for businesses to thrive.

He pointed out that a stable exchange rate is crucial for importers to plan their operations efficiently and to keep prices within affordable ranges for consumers.

“The government needs to take decisive action to stabilize the cedi. This is not just about supporting businesses; it’s about ensuring that Ghana does not face a food shortage,” he urged.

Source: A1Radioonline.com|101.1Mhz|Moses Apiah|Ghana

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