The President of the Ghana Union of Traders’ Associations (GUTA), Dr. Joseph Obeng, says traders are holding off on reducing prices despite the recent appreciation of the cedi because they’re unsure the gains will last.
Speaking in an interview, Dr. Obeng explained that years of unpredictable currency performance have made traders cautious.
“When the cedi appreciates, they see the gain but it doesn’t last, that’s why when I called for price reductions, many traders asked, ‘Are you sure this is sustainable?’ They don’t want to rush and be exposed again,” he said.
GUTA recently urged traders to reflect the cedi’s appreciation in their pricing. However, Dr. Obeng admitted that many remain hesitant, fearing a repeat of past volatility.
“It’s crucial we find ways to sustain these gains. If we don’t, this appreciation will mean nothing,” he stressed.
He emphasised that lasting stability, not short-term gains, is what will ultimately lead to lower prices.
“We need to focus on predictability and sustainability. That’s what gives traders confidence to adjust prices. The traders aren’t unwilling, they’re simply being cautious. They’ve seen this before, and they’re watching to see if it lasts.”
He added that consistent government policy and continued forex controls by the Bank of Ghana are critical to building trust in the currency’s stability.
“Sustained exchange rate stability helps bring down inflation and interest rates, those are the real drivers of business recovery,” he said.
Dr. Obeng sees the current moment as a rare opportunity to rebuild.
“We need to take advantage of these gains to enhance productivity and boost competitiveness. If we get it right, we’ll be on the path to real economic recovery.”