Ghanaians must pray for the appreciation of the cedi seen in the last couple of days to continue since it could possibly result in the reduction of prices of goods and services on the market.
The Ghana Union of Traders Association (GUTA) says it has acknowledged the recent resilience shown by the cedi against other major trading currencies bringing some respite to the business community.
A $40 million injection by the Bank of Ghana into the economy has gingered the local currency to record a very significant appreciation. The Cedi is currently trading at an average of 15.90 to the dollar this week compared to about 17.20 last week.
In an interview with The High Street Journal, the President of GUTA, Dr. Joseph Obeng admitted that the cedi plays a very crucial role in the pricing of their goods hence its appreciation is likely to result in the review of prices.
He was however quick to add that the price reviews will only be felt by the consuming public if only the appreciation of the currency is sustained.
We have seen the downward trend of the foreign exchange, that’s the price of the foreign exchange, especially the dollar. And that means the cedi is appreciating. The exchange rate is a major factor for our pricing. Definitely, it will have an impact on the pricing, especially when there’s a long stability. When the stability is sustained, then you start seeing the effects on the prices also trickling down to follow the downward trend of the exchange rate. So yes, definitely once the dollar is a major component of our pricing, if it goes down, then it is obvious that prices will be changed.
He therefore cautioned that Ghanaians should not be in a rush to expect price adjustments since it will take some time for the effect to trickle down. Dr. Obeng explains that some businesses might have bought their goods at the old rate and hence would want to clear them before reviewing their prices.
However, Dr. Obeng is confident that should the appreciation be sustained, Ghanaians will definitely see price reductions on the market very soon.
“Some people might have also bought from the old rate and all that and so it will take some some reasonable time and where it will settle but definitely it is going to impact positively so that we can also transfer the gains to the consuming public,” The President of GUTA gave a conditional assurance.
