Traders in Accra Not in Favour of Immediate Price Cuts Despite Strong Cedi Performance

• Some traders are not ready to reduce their prices amid the recent strengthening of the Ghana cedi
• Traders have argued that their current stock was purchased at much higher foreign exchange rates
• Bloomberg earlier named the cedi the world’s best-performing currency after it appreciated by nearly 16% against the dollar over the past month

Some traders in major business enclaves in Accra have resisted calls for a reduction in the prices of goods due to the strengthening of the Ghana cedi.

Citi News reported that some traders have argued that their current stock was purchased at much higher exchange rates.

Because of this, immediate price cuts are not practical for them.

Rebecca Ofosuwaa, a retailer of household consumables, for example, said only prolonged stability could lead to reduced prices.

“I disagree with the calls for price reductions. For instance, if someone placed import orders a month ago when the dollar was trading at GH¢16, the recent appreciation of the cedi doesn’t automatically reflect in current prices. If the cedi remains stable, we may begin to see price reductions around August.”

How has the Ghana cedi been performing?

The Ghana cedi has been described as the best-performing currency in recent times.

Bloomberg, for example, named the cedi the world’s best-performing currency earlier in May. This was after the cedi appreciated nearly 16% against the US dollar.

Bloomberg previously indicated that the cedi may end the year at GH¢15.97 per dollar.

The strength of the cedi has helped ease inflationary pressures, contributing to Ghana’s lowest inflation rate in eight months.

Consumer price inflation fell to 21.2% in April, down from 22.4% in March.

Traders union calls for considerate pricing

The Ghana Union of Traders’ Associations called on its members of the trading community to review and adjust the prices of goods and services in response to the recent appreciation of the cedi.

The union called the strengthening of the cedi timely and urged traders to reflect the changes.

“The Ghana Union of Traders’ Associations (GUTA) wishes to appeal to the trading community to adjust prices of goods and services to share the significant gains made by the appreciation of the cedi against the major trading currencies and bring some relief to the consuming public."

In comments to YEN.com.gh, the president of the Traders Advocacy Group, David Amoateng, acknowledged the free market considerations.

"Nobody can force any trader to reduce prices, but we can only plead… it will be unfair if you say everybody should reduce each of their prices."

Banks charging up to $20 fees on dollar accounts

YEN.com.gh reported that commercial banks resumed charging clients for owning foreign exchange accounts in September 2024.

The fees will differ by the types of forex or the account balances. Some charges are expected to reach up to $20.

Some dollar accounts were charged $5 for holding over $100, according to reports. These reintroduced charges are in addition to the existing 3% withdrawal charge.

In July 2024, some banks started to close forex accounts and asked clients to use e-wallets instead.

Proofreading by Samuel Gitonga, copy editor at YEN.com.gh.

Source: YEN.com.gh