Traders, Manufacturers Say Price Reductions to Occur by Next 60 Days as Cedi Strengthens

• Trader groups have said prices of goods will see reductions in the next two months as the cedi continues to strengthen
• The Ghana Union of Traders Association (GUTA) and the Association of Ghana Industries (AGI) met with the government over matters relating to forex and pricing
• The cedi has been tagged the world’s best-performing currency after it appreciated by nearly 16% against the dollar recently

Trader groups have said Ghanaians can expect the prices of goods to start reducing by the next two months as the cedi continues to strengthen against foreign currencies.

The Ghana Union of Traders Association (GUTA) and the Association of Ghana Industries (AGI) met with the Minister for Trade and Industry, Elizabeth Ofosu-Adjare, on May 14 amid calls for immediate price reductions.

Although prices of goods remain relatively unchanged, GUTA and AGI explained that there is a natural lag between changes in the exchange rate and price adjustments on the market due to older stock acquired at previous, higher rates.

GUTA President, Dr. Joseph Obeng, appealed to government to maintain the cedi’s current stability, assuring that traders would adjust prices as new stock arrives.

AGI President, Dr. Humphrey Ayim-Darke, also assured that manufacturers were prepared to reflect the gains in their pricing.

“We believe sincerely that within the 60 days, the impact of the stronger cedi will be seen in the wholesale and retail prices.”

GUTA previously called on its members to review and adjust the prices of goods and services in response to the recent appreciation of the cedi.

In comments to YEN.com.gh, the president of the Traders Advocacy Group, David Amoateng, expressed hope that to cedi would continue to strengthen towards the end of the year.

"Like Oliver Twist, we always ask for more... By the close of year, it comes to GH¢10 to a dollar, traders would be extremely excited… We are praying it keeps coming down."

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 reported 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.

Twene Jonas hails Forson over Cedi strength

Earlier, YEN.com.gh reported that US-based social commentator, Twene Jonas, praised Ghana's Finance Minister, Cassiel Ato Forson, over the cedi's performance against the dollar and major global currencies.

According to Twene Jonas, the Cedi's appreciation against the dollar was due to Ato Forson's stellar economic management.

In a video shared on TikTok, the outspoken US-based Ghanaian described Ato Forson as the best Finance Minister in the world.

Source: YEN.com.gh