President of the Ghana Union of Traders (GUTA), Dr. Joseph Obeng has said prices of goods in the market will begin to reduce in coming days, owing to the rise of the Cedi against the dollar.
Dr. Obeng noted that retailers in the market have at this point in time made some significant gains because of the appreciation of the Cedi and that will start reflecting in prices of goods in the market.
Speaking in an interview on TV3’s Key Points, May 17, 2025, he explained that traders who may refuse to reduce prices will be compelled by the market forces to do so as other traders would have reduced their prices.
“I think we have gotten quite a significant gain that will start reflecting in the market soon. At least we have stability for some time before the sharp decline in the value of the dollar in favour of the Cedi.
“If even you are a retailer, by now you should have even sold some of your goods. All that I am saying is that if you sell some of your goods and buy new ones, you strike a reasonable average so that you are not pushed out of the market,” he noted.
However, Dr. Obeng cautioned that consumers must lower their expectations for reduction in prices of goods once the Cedi appreciates against the dollar.
He explained that the rise of the Cedi against the dollar is not the only determining factor to reduce prices of goods, stating that utility tariffs and Value Added Tax (VAT) play a role in passing on prices to consumers.
According to him, utility tariffs have been increased as well as unfavourable VAT system, hence traders cannot outrightly reduce prices of goods.
“The strength of the cedi alone cannot act in isolation. It should be tied up to the VAT. We need to have the VAT reforms because there is cascading effect and all that.
“And then there’s the utility bills and all that have gone up. Government has to sit with PURC and I don’t know if we are calling their attention because one reason they cited for the increase in the forex rates and now the dollar is depreciating.
And so, they don’t have any reason to increase, otherwise it negates any gains that we are having and so we have to check all these things and not put it on the importer alone. We have to tie it up to all these things,” he stressed.
