Exporters cry over losses as cedi appreciates

Although Ghanaians are excited the cedi is fast appreciating, not all economic players are in support of a rampant cedi rise against the major trading currencies.

Exporters for instance are counting their losses with the recent development.

One of such Exporters is Sekaf Ghana limited, exporters of natural cosmetics made from Shea nuts and exported to the USA, Middle East and Central Africa.

CEO of Sekaf Ghana Limited Senyo Kpelly, whose products are labelled Tama Cosmetics, tells Abigail Adomako Antwi of Joy Business the company has lost about 25 percent of its profits following the appreciation of the cedi.

“It is bad news for us because our inputs are locally sourced and we signed contracts when the cedi was around 4cedis. The Shea nut price in Tamale market was 1600cedis per tonne as at June 30 and our price was 360 dollars at the time but after purchasing and exporting, with the current rate the 360 dollars is giving us about 1200 cedis about 25 percent loss”, he said.

As a new measure to arrest the fall of the cedi, the Bank of Ghana has been pumping some $20million a day into the economy.

That has led to a quick appreciation of the local currency against the US dollar. Within the last two weeks the cedi has appreciated 22 percent against the US dollar.

The appreciation of the cedi although has led to some reduction in prices of petroleum products and a relief to Ghanaians Senyo Kpelly says like the depreciation, it is not good enough.

He is rather calling for a stable currency against a stronger one.

“If the currency is dancing too much it is not good for us. We need a fixed rate in that if the cedi is 3cedis to the he dollar i should remain as such for a year so businesses can plan” he intimated.

CEO of Sekaf Ghana Limited Senyo Kpelly is meanwhile unsure of the sustainability of the 20 million dollar injection by government to keep the cedi from falling.

He however maintains if the current appreciation is sustained for about 6 months inflation will drop and we will see some stability in prices.


source: myjoyonline.com