Economic crunch: GUTA members starts 5-day strike Wednesday

ACCRA, Oct 19 (NNN-GNA) — Members of the Ghana Union of Traders Association (GUTA) will Wednesday close shops in Accra to protest deteriorating economic situation.

The group described the industrial action, which will end on Monday Oct 24, as a “pinch” on government to urgently address the depreciating cedi, high interest rate and inflation.

GUTA announced its decision after engaging in a three-hour meeting with some members of the Council of State.

In a press briefing after the meeting, the President of GUTA, Dr Joseph Obeng, said the resolve to close shops was a distress call to the nation.

He said even though there was a global dimension to the economic situation, thus the Russia-Ukraine War and the COVID-19, the nation could not dwell on those events, which had no end in sight.

The Association has among other things called on government to ascertain the factors leading to excessive demand for the forex while reviewing investment laws to retain forex and push foreign investors into productive sectors of the economy.

“Government should adopt other alternative currencies like the Chinese Yuan to reduce the pressure on the Dollar, especially. There should be the immediate implementation of the road map set out to flush out all illegal foreigners in the retail trade sector,” said Dr Obeng.

Sharing his thought on the outcome of the meeting, Samson Asaki Awingobit, the Executive Secretary of the Importers and Exporters Association – a member of GUTA, explained that the Council of State indicated that it could not help with exchange rate and inflation.

“This means our problems cannot be solved; hence, we’re asking any businessperson, anyone who clears goods at the port, anybody who operates a shop, including cold stores to close down their shops tomorrow (Wednesday),” Awingobit said.

The Council of State on Aug 25 requested GUTA to put an earlier decision to close shops on hold for a one-month period following assurances to address the Association’s concern.

A joint committee was set up and tasked to find solution to the issues.

Unsatisfied with the output of the joint committee, the Association announced the closure of shops this week.

Ghana currently has an interbank exchange rate of GH₵11.5 to US$1, inflation rate of 37.2 per cent, and a monetary policy rate of 24.5 per cent.

Source: NAM NEWS NETWORK