60-day price adjustment window unfair to consumers – CUTS Int’l

Appiah Kusi Adomako, the West African Regional Director of CUTS International, has criticized a recent decision. The Ghana Union of Traders Association (GUTA) and the Association of Ghana Industries (AGI) granted businesses 60 days to adjust prices. This decision followed a meeting with Trade Minister Elizabeth Ofosu-Adjare on May 14. The meeting addressed public pressure for prices to reflect the cedi's improved value.

Currently, the cedi trades at about GH₵12.40 to the U.S. dollar. Despite this appreciation, market prices have largely stayed the same. GUTA and AGI stated that price adjustments lag behind exchange rate changes due to existing stock bought at higher rates.

During an interview on Eyewitness News, Mr. Adomako argued that the 60-day window is too generous for businesses and unfair to consumers. He noted that when prices rise, the cedi often falls quickly. Prices can even jump three times in one day based on projected exchange rates.

Mr. Adomako emphasized that businesses usually raise prices immediately when the cedi depreciates. Therefore, they should not delay reducing prices now that it is gaining value. He acknowledged some businesses may still sell old stock but warned against exploiting the grace period for new goods arriving after May 15.

He believes it is fair for businesses to gradually reduce prices as the cedi appreciates. By the end of the 60 days, consumers should see full benefits from this change. He also pointed out that new goods entering the market should not take advantage of this moratorium.

Overall, he stressed that consumers deserve to benefit from gains in the cedi's value against the dollar.