Despite the significant gains in the value of the Ghana cedi, the Chief Executive Officer of the Ghana National Chamber of Commerce and Industry (GNCCI), Mark Badu Aboagye, says Ghanaians should not expect an immediate drop in prices on the market.
While the local currency’s strong performance has generated optimism about easing inflationary pressure, the GNCCI boss insists that price reductions will not happen overnight, citing cautious market behavior and the complex dynamics of pricing decisions in the business community.
He says businesses are still assessing whether the cedi’s appreciation is going to be sustainable, especially given the past volatility and sharp fluctuations that have historically affected planning and costing.
“Now people [businesses] are a bit cautious about reacting to this improvement. I mean, if it’s sustainable, then other people obviously will have no option but to transfer this improvement to be reflected in prices.”
Justifying why he wants customers to exercise caution, Badu Aboagye pointed out the significant gap between interbank rates and forex market rates, which suggests that traders and businesses are taking a wait-and-see approach before adjusting prices downward.
“If you observe what is happening with the interbank and also the forex, you realise that there is a significant difference in prices, which means that the business community is also observing what is going on,” he said in an interview with Accra-based JoyNews.
He stated that “I don’t expect that immediately tomorrow you will go to the market and see prices dropping. I think that it may take some time for us to enjoy that benefit.”
Mr. Badu Aboagye stressed that sustainable price relief depends on continued currency stability, as well as how quickly businesses can clear off old stock purchased at higher exchange rates and secure cheaper inputs under the current conditions.
He encouraged policymakers to maintain the current macroeconomic discipline to give businesses enough confidence to adjust prices sustainably, rather than react temporarily.
But for now, he says consumers should manage expectations.
