The Bank of Ghana Governor, Dr. Johnson Asiama, has predicted a gradual reduction in the prices of goods and services following the recent appreciation of the cedi.
The local currency has gained nearly 24% year-to-date, with Dr. Asiama attributing the gains to a potential easing of import-related cost pressures in the coming months.
According to Dr. Asiama, who spoke at a press briefing on Friday, May 23, 2024, the benefits of the cedi’s appreciation will be felt by consumers soon.
“You can understand that some people stock their goods at a higher exchange rate. So naturally, even with the appreciation – it takes a while for you to see that adjustment. However, rest assured that you will see the adjustment certainly so long as there is competition, so long as it is not a monopoly, and we will see that kind of phenomenon very soon.”
The Governor urged retailers and importers to reflect the improved performance of the cedi in their pricing decisions, as part of broader efforts to consolidate macroeconomic stability.
Dr. Asiama also addressed concerns about the potential impact of the cedi’s appreciation on Ghana’s export competitiveness.
“Much as you want to have cedi stability in nominal terms, the important thing here is to ensure that in real terms, the cedi is not appreciating persistently. We think that where we are now, we don’t have that problem of real appreciation that would adversely impact our competitiveness,” he said.
The cedi’s recent surge has seen it trade at around GH₵11.85 to the dollar, GH₵15.84 to the British Pound, and GH₵13.34 to the Euro, according to the Bank of Ghana’s latest data.