Economist Challenges Importers to Reflect Cedi Gains in Prices

An economics lecturer at the University of Ghana, Professor William Baah Boateng, has issued a direct challenge to Ghanaian importers and traders who are benefiting from the appreciating cedi. He insists that they must pass on the gains to consumers by lowering prices, or risk exposing a double standard.

Speaking on Joy News’ PM Express Business Edition on Thursday, May 8, Prof. Baah Boateng criticized business owners who hike prices when the cedi depreciates but fail to reduce them when it appreciates.

“I will be very happy if he says when it goes down, then he will also reduce his prices to reflect the same level,” he said in response to remarks from a representative of the Ghana Union of Traders Association (GUTA), who had earlier expressed satisfaction with the cedi’s recent appreciation.

The economist pointed out a common practice among importers who, when the cedi weakens, promptly increase prices to cushion against potential losses. However, when the local currency strengthens, they are slow to reduce prices, leading to public frustration.

“When the cedi is appreciating, importers will by all means increase the price in anticipation of further depreciation,” he noted. “And I expect that if it is appreciating, then they should reduce the price in anticipation of further appreciation.”

Prof. Baah Boateng stressed that economic fairness requires consistent pricing practices. “If you’re going to adjust prices upwards when the currency is falling, then do the same when it’s rising. Don’t use one standard for losses and another for gains,” he argued.

He also praised the Bank of Ghana’s cautious approach amid the changing economic landscape, noting that the central bank is wisely monitoring the situation without making hasty moves. “What I see the central bank doing is watching and not just doing anything,” he said.

The economist also highlighted that economic dynamics do not solely rely on demand and supply, but are influenced by regulatory measures. While acknowledging some improvements in the government’s fiscal discipline, he noted that the fundamental economic structure remains largely unchanged.

Prof. Baah Boateng concluded by urging traders to act responsibly, emphasizing that the cedi’s appreciation should not be seen as mere positive publicity while maintaining high prices. A fair market requires prices to reflect both losses and gains equally.