Ghanaian traders have refused to reduce prices of goods and services and indicated that the earliest they can do so will be in the month of August.
Speaking to the media, traders at Okaishie and Makola markets said most of their stock of goods were purchased at a time of high dollar prices, and they cannot reduce prices until they purchase new stock at the reduced dollar rate.
The Ghana Union of Traders (GUTA) recently called on its members to reduce their prices in light of the recent appreciation of the Ghana cedi against the dollar. However, multiple traders who spoke to the media indicated they cannot do that now, with one targeting the month of August for any reductions to take effect.
“I disagree with the calls for price reductions. For instance, if someone placed import orders a month ago when the dollar was trading at 16 cedis, the recent appreciation of the cedi doesn’t automatically reflect in current prices,” said Rebecca Ofosuwaa, a retailer of household consumables. “If the cedi remains stable, we may begin to see price reductions around August,”
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Another trader, Maame Efua, made a similar point. “Most of us have old stocks so with that we cannot reduce the prices. We can only reduce when we import new products using the new prevailing rates.”
GUTA, FABAG, call for price adjustments
The Ghana cedi has had a spectacular few months trading against the U.S. dollar, falling from a high of circa Ghc 16 to the dollar to a current rate of circa Ghc 13 to the dollar.
Despite the significant gains achieved by the cedi, there has been no corresponding decrease in the price of goods and services, leaving Ghanaians unable to feel any effects of the rising cedi.
Amidst this climate, the Ghana Union of Traders Association (GUTA) called on traders to cut prices to reflect the cedi appreciation, but they have fiercely resisted the call.
GUTA said its call was to ensure Ghanaians receive some relief from the recent strength of its currency, arguing that reducing prices is not just an economic but a moral imperative.
Meanwhile, the Food and Beverages Association of Ghana (FABAG) announced that its members have reduced prices, with sugar down 7% and rice down about 10%.
FABAG called for more price reductions and appealed to other bodies, including GUTA, to also ensure their members reduce prices.