‘We Need Standardized Exchange Rates’ – Used Clothing Dealers Appeal To Gov’t

The Greater Used Clothing Association is calling on the government to give them a permanent and standardized Exchange Rate which will help boost their businesses.

According to the leaders of the Association, although they are happy about the 2020 Budget Statement as delivered by the Finance Minister, one of their major concerns which must be addressed by government is the Exchange Rates.

Addressing a Press Conference on Friday, the Patron of the Association Mr Oscar Ankoah noted that the constant change in prices and the exchange rates are making their business suffer.

He suggested that the standard exchange rate can be for a certain period.

According to him, a fixed exchange rate or a pegged exchange rate, will allow currency’s value to be fixed or pegged by a monetary authority against the value of another currency, and that when that is done, it will stabilize the value of the Cedi by directly fixing its value in a predetermined ratio to a different and more internationally prevalent currencies to which the value is pegged.

He explained that “In doing so, the exchange rate between the currency and its peg does not change based on market conditions, unlike in a floating exchange regime. This makes trade and investments between the two currency areas easier and more predictable and is especially useful for small economies and businesses such as ours, that borrow primarily in foreign currency and in which external trade forms a large part of our GDP.”

He also suggested that the central bank can consider using the open market mechanism in order to maintain its pegged ratio and, hence, the stable value of its currency in relation to the reference to which it is pegged.

Also on his part, Dr Nyarko Effah, Executive Member of the Association in adding his voice to the issues raised, indicated that Used Clothing business is a major employer in the informal sector of the Ghanaian economy and that it contributes a lot to the Tax net of the country.

He said, government must begin talks with the Banks to cut some of the bureaucratic processes in acquiring loans for their businesses.

Dr Nyarko Effah noted that loan processes from most Banks in the country take a long time to materialize which affects their businesses.

He said, government must engage the Banks to fashion out modalities of giving flexible loans and cut down requirements for accessing these loans.

The Public Relations Officer of the Association, Mr John Obiri Yeboah in an interview after the Press conference indicated that the Association has confidence in the Akufo-Addo led government and believes that their concerns will be addressed soon.

According to him the Association is appreciative of the fact that government in its 2020 budget did not introduce any more taxes.

However, he appealed to government to intervene so as to help businessmen and women whose monies are locked up in the banks.

He explained that the situation has affected many businesses with some affected traders dying as result.

He said government must set up a committee to see how best the locked up monies can be retrieved and paid to the customers.

By Prosper Agbenyega

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