The West African Regional Director of CUTS International, Appiah Kusi Adomako, has criticised the 60-day window granted to businesses by the Ghana Union of Traders Association (GUTA) and the Association of Ghana Industries (AGI) to adjust prices in response to the recent appreciation of the Ghana cedi.
The decision followed a high-level meeting held on Wednesday, May 14, with the Minister for Trade and Industry, Elizabeth Ofosu-Adjare, amid increasing public pressure for prices to reflect the cedi’s improved performance. The currency is currently trading at approximately GH₵12.40 to the U.S. dollar.
Despite the cedi’s appreciation, the prices of goods on the market have largely remained the same. GUTA and AGI explained that price adjustments tend to lag behind exchange rate changes due to existing stock purchased at higher rates. They announced a 60-day window for businesses to adjust prices in response to the Ghana cedi’s recent appreciation against the US dollar.
However, speaking on Eyewitness News with Sammi Wiafe on Wednesday, May 14, Mr. Kusi Adomako argued that the 60-day window is overly generous to businesses and unfair to consumers.
“The 60 days is a bit generous to businesses, but to the consumers, I don’t think it is fair, because anytime prices go up, the cedi begins to fall badly. We can even see prices jumping three times in a day. And sometimes people even use the predictive prices of the cedi to the dollar to sell their goods in the market,” Mr. Appiah Adomako Kusi said.
He stressed that businesses often increase prices instantly when the cedi depreciates, sometimes even based on projected exchange rates, and therefore should not delay reductions now that the currency is gaining value.
He acknowledged that some businesses may still be selling old stock or clearing goods at the ports, but cautioned that new goods arriving after May 15 should not exploit the 60-day grace period.
“Now that the cedi has started to appreciate in value, I think it will be fair that businesses should gradually reduce prices as the cedi appreciates. So that by the end of the 60th day, we should be able to get full benefits coming to consumers.
“There are genuinely businesses that may be having old stock, and others that are clearing goods from the ports. Now that we have agreed to the 60 days, what it means is that those who will be bringing their goods to the market tomorrow [May 15], would also want to ride on the 60-day moratorium.
“I think it’s also fair for the consumer to ride on the gains of the cedi against the dollar.”
Read also…..
GUTA, AGI set 60-day deadline to cut prices as Cedi strengthens
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