The President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, has disclosed that some members of the association have started reducing prices of goods at the markets.

This, he said is in response to calls for traders to adjust prices down as the cedi gains some strength against the dollar.

He, however added that the reduction in prices will take a gradual process due to current developments in the markets.

“Some of our members have started reducing the prices of their goods. But I must say that we must be measured in our expectations because it will go through a gradual process”, he told George Wiafe on the PM Express, Business Edition on the Joy News channel on December, 16, 2022.

According to him, the move has been influenced by the sustained stability of the cedi against the US dollar over the past three weeks, which is impacting positively on their businesses and operations.

Dr. Obeng stressed that it will be important for consumers to be measured in their expectations since it will take some time for the price transmission to take place.

Push for reduction in prices

There has been pressure on traders to review prices of goods and other commodities on the market in line with the current stability of the cedi against the US dollar over the past weeks.

However, the traders have maintained that more time is needed to properly assess the situation before prices are reduced.

Dr. Obeng argued that its goods, currently on the market are stock acquired during periods of the fast depreciation of the cedi.

GUTA’s dilemma

Dr.  Obeng debunked suggestions that GUTA members are benefiting from the present situation, escalating their prices.

“Most of our leaders had bought these goods at around ₵14 to a dollar, and therefore it will take some time before the expected reduction will fully take place on the market”.

He called on the Bank of Ghana and government to do more to help stabilise the Ghana cedi, warning that any sharp reversal, may cause confidence to fall among investors.