The Ghana Union of Traders’ Associations (GUTA) has issued a strong appeal to its members to lower the prices of goods and services in response to the significant appreciation of the Ghana cedi against major international trading currencies, particularly the US dollar.
In a press statement signed by its President, Dr. Joseph Obeng, GUTA called on the trading community to pass on the benefits of the cedi’s recent gains to consumers, providing much-needed relief to the public.
The Ghana cedi has experienced a notable recovery in recent weeks. This appreciation can be attributed to a combination of factors, including:
- Improved Investor Confidence: Recent positive economic indicators, such as the S&P Global Ratings upgrade (from Selective Default to CCC+), have boosted investor sentiment towards Ghana.
- Successful Debt Restructuring Efforts: Ongoing and completed debt restructuring initiatives have eased pressure on the cedi.
- Fiscal Discipline Measures: The government’s commitment to expenditure cuts and adherence to IMF-backed fiscal reforms are contributing to economic stability.
- Increased Foreign Exchange Inflows: Potential increases in foreign exchange reserves and inflows are lending support to the local currency.
- Lower Inflation (albeit still high): A gradual decrease in inflation, partly due to a stronger cedi and lower energy prices, is also playing a role.
Bloomberg recently reported that the Ghana cedi was the best-performing currency globally against the US dollar since the start of April, appreciating by a substantial margin.
This strengthening has the potential to reduce the cost of imported goods, which often form a significant portion of the goods traded by GUTA members.
