Despite recent gains by the Ghanaian cedi against major trading currencies, traders are holding off on reducing prices due to concerns over the sustainability of the currency’s appreciation, says Dr. Joseph Obeng, President of the Ghana Union of Traders’ Associations (GUTA).
Speaking on Joy News’ PM Express on Monday, May 12, Dr. Obeng noted that while the marginal appreciation of the cedi has sparked hopes of economic relief, deep-seated skepticism rooted in past volatility is keeping traders cautious.
“When the cedi appreciates, they see the gain, and it’s not sustained. That’s why people are asking me, especially when I made the call to reduce prices, Are you sure this is going to last? Are you not rushing?” he noted.
According to him, the trading community has grown wary after several false dawns, moments when the cedi showed strength only to sharply depreciate again, leading to business losses and inventory valuation risks.
“It’s because of what has happened in the past. The traders are simply not ready yet. They are watching to see if this is real,” Dr. Obeng explained.
His remarks follow a recent call by GUTA for businesses to adjust prices to reflect the cedi’s recent appreciation. However, Dr. Obeng admitted that trust in the currency’s recovery is not yet widespread among market actors.
“This gain will come to nothing if we are not able to sustain it. It’s very important for us to think about how to maintain this gain,” he cautioned.
He called on policymakers to focus not just on short-term interventions, but on crafting long-term strategies that ensure exchange rate predictability, which he believes is crucial for business planning and pricing decisions.
“We have to talk about predictability and sustainability. That’s what we should be focusing on now,” he emphasized.
Dr. Obeng expressed optimism that with prudent and consistent policy actions, particularly from the Bank of Ghana, traders will be more willing to adjust their pricing models.
“Whatever thing we have to do, if government puts prudent mechanisms in place, if the Bank of Ghana continues the stringent forex controls then we can talk about maintaining it,” he noted.
He also tied currency stability to broader macroeconomic recovery, suggesting that a steady cedi could help ease inflation and lower interest rates, fostering a more supportive business environment.
Describing the current currency trend as a potential turning point, Dr. Obeng urged stakeholders to seize the moment to build a more competitive and resilient economy.
“If you can use the stability of the currency to enhance productivity, that will make us competitive. Then, of course, we are on the threshold to recovery,” he concluded.
